Gold Slips Below $800

Profit taking this morning have pushed gold back below the $800 mark. With the Dollar gaining strength after 2007's 10% drop against the Euro, predictions for next year seem to be leaning towards a sizeable downward correction in the spot price of gold. This is a change from just a few days ago, when economists were calling for a stable average gold price of $800 through 2008.

Seems that this time around gold has held a very solid ceiling at the $850 level. This reminds me very much of the last super bull market back in 1979-1980.

Other factors such as falling home prices, rising unemployment and oil supply problems may yet have an effect, but for now, gold seems to have capped.