Bullion Junkie

Last March, Gold reached a record $1,000/ounce level and stayed there for a couple of days. Today, the gold market in New York is seeing volatile trading on Wednesday that brought the price of gold down $3.68 to close a $966.20/ounce on the New York Mercantile Exchange.

This is no surprise because gold was able to break the $1,000/ounce resistance last week and this week, the trading session started off with investors taking profits from gold after it's large rally last week. A US economic report showing an unexpected sharp fall of U.S. home sales again instigated the rally to buy gold as investors searched for a safe haven, pushing gold prices into positive territory not seen since about this time last year.

The World Gold Council indicated that gold is the most favored investment tool this year compared to other asset classes. It reported that demand for gold was 64% higher in 2008 than around the same time in 2007. The current drop in gold prices is a great opportunity for investors to get back into this metal.