Gold Bugging Now?

Since New Years, gold costs have gone up more than $100 per ounce, trading to $915 in early February. Tom Hartmann, broker researcher for Altavest Worldwide Trading Inc, says there was a tighten- ing of the trading range due to the implied inflation in President Obama's suggested impulse package. "People are on the lookout for a place to park money," he asserts, adding that folks worry that more intervention will debase the buck and that moves towards protectionism could prompt Japan and China to stop purchasing US debt. "People are buying gold for a number of reasons, and no-one is avid to sell." In March, he says gold could test $990. "We have a hot market right now," offers Fain Shaffer, trader and president of Infinity Trading Corporation. Gold always is valued in times of doubt, which is inflating worldwide. "There are some pretty annoying numbers that are coming out," he is saying. He observes that in the US, there's a two-year supply of housing, unemployment rose to 7.6%, and we've not found the bottom for the DJX Industrial Average. Japan's commercial production is the worst ever and Toyota had its first loss in 70 years. He predicts a pullback to $850 in late Feb , then a rally past $1033, the record high, in March.