May 24, 2006 | posted by Michael Baxter in Uncategorized |

With the commodity bubble apparently bursting, some of our readers are asking, what next for gold? We predicted that a falling dollar could potentially lead to some countries gradually replacing their dollar holdings with gold, putting more upward pressure on yellow metal. But as the price has fallen, some say crashed, is that idea now ridiculed?

Gold broke through the $700 an ounce barrier at the beginning of this month, and went on rising, but this morning it was worth just $663, a fall of over $69 in less than ten days. There’s still no reason to conclude that gold is off the agenda again - bear in mind that as recently as November 29 last year the press were hailing a new 25-year high for gold, and dealers were celebrating as it passed $500 an ounce. Some say that, for investment, the yellow metal is in fact a kind of fools’ gold. On the other hand, its price today is around 50% up on its level 12 months ago - some crash#33;