Gold finally making a stand?

Gold is one of our favorite topics here at Financial Betting, for all of the reasons why people love soap operas. It’s up, it’s down, it can’t decide where it’s going, but there’s always something to talk about. And around it you have gold bears who insist that every day will be the day that it’s all going to turn around, as well as happy gold haters who love to mock the optimism of the gold bears.

Well, today the gold bears have won a small victory, with gold going up 1%, reaching the price of $1,246.90 per ounce. Not long before, it was looking to soar toward $1,260 per ounce, but alas, it was not to be. This gives them a little something to gloat about, but let’s not get out of control, here.

After all, gold is still way, way down from its all-time high about two years ago in September of 2011. Back then, it was almost to $1,900 per ounce, and the price is still down well over 30% since then. Hopefully, anyone who was holding onto it back in September isn’t still doing so now, because we won’t be seeing that price again anytime soon, or maybe even ever.

But if you’re looking to buy now, some believe that you can short gold for a nice little profit when it hopefully reaches over $1,300 per ounce. The problem is that a lot of other skeptics are expecting the price to drop even further than it has, since the Fed is expected to slow down its bond buying now that the economy is starting to heal.

Still, good news is good news, and a long-term bounce back is going to require a lot of days like today. As Bill Murray said about a thousand times back in What About Bob?, it’s all about “baby steps”.