Friday, 26th May 2006 (4115 views)

Gold touched $650 per ounce today (May 26th) in the US, as the precious metal gained slightly after a downward trend this week.

Analysts told Reuters the trajectory of the price was due to investors hunting out 'bargains', as an unexpected period of buoyancy put the price up slightly.

However, after a dip this week on the back of recent 26-year highs, analysts warned there was potential for further movement before the price stabilised.

With Monday (May 29th) a bank holiday in the UK and also a holiday in the US, there was a lack of clarity on where the price might go later today.

UBS Investment Bank analyst John Reade told the news agency: "I doubt people will want to climb into this market and re-establish long positions ahead of the weekend ... we might see people coming back onto the long side sometime next week."

Gold has proved a major winner with investors, as a turbulent global economy and volatile political situation with regard to oil supplies and international relations have pushed investors back towards the precious metal.

Traditionally, gold is seen as a 'safer' investment than the currency markets or other commodities when market patterns become unpredictable or liable to fall.

 

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