US$1000 gold - fanbloodytastic!
Well sort of.... South Africans have always had an affinity with gold and when it starts hitting records, the gold bugs start jabbering.
Considering that the mining industry in general is down in the doldrums, a surging gold price may help to stave off some of the unemployment we could be facing in the next few months
Yesterday gold hit US$1007 an ounce before retreating to US$993 in US trade... There has also been a bit of a decoupling with the rand weakening while the gold price is going up which is contrary to recent history where the rand has strengthened when gold has gone up.
While it is great for the gold miners - As we've warned before on this blog - when gold spikes it has tended to pre-empt further equity market sell-offs... gonna be interesting to see what happens here and how the gold shares end up reacting.
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