Gold firm above $800, holiday trade light

People doubting the thirst of investors to buy gold have had their scepticism confounded by a new surge that has once more taken the metal's price over the $800 mark.

Bullion investment picked up yesterday and this morning (November 22nd), rising up to around the $803 per ounce mark and consolidating firmly above the $800 level.

The positive signs for gold suggested that the metal had left behind last week's shaky run, when profit-taking and fears of price over-valuation drove spot gold down from a 28-year peak near the $850 mark.

Today's trade has already been dealt lower expectations with the US Thanksgiving holiday promising to keep speculation down and ensure lighter trade than on Wednesday, which saw oil prices broach the $100 per barrel – sending shockwaves through world markets.

A mixture of positive and negative news for oil inventories meant that crude prices have experienced a series of ups and downs, but consistent US demand – in the face of high prices – has kept an upward pressure on crude values.

The pick-up in gold prices has once again confirmed the close relationship between the two commodities, as the shockwaves unleashed by higher oil prices and fuel costs worried investors into the sound inflationary hedge that gold for many represents.