Gold in 2006! Is Gold going higher?
Technical analysis indicates that gold might reach $700/ troy ounce in 2006. Indicators suggest a slightly overbought recommendation short term, but the demand for gold among foreign markets will continue. There are numerous indications that support a move higher. These range from:

1. USD weakness going foward
2. Gold as a safe haven to the emerging middle class in overseas markets
3. Exotic currencies backed by gold reserves
   
4. International political tensions
5. Possible supply strains

With this said, there could also be another reason why gold might move higher. The notion that a slight inflation increase as time progresses is common evolution of economic principles. As we see inflationary tendancies in prices of oil and metals (i.e. gold, platinum, silver), the overall well-being of our economy is strong and such a move suggests our nation is growing financially.  ¶ 8:36:00 PM