Gold price creeps back, $800 in sight

Gold prices bounced back up toward the $800 mark today (November 2nd) as buyers joined the gold wagon while its price was momentarily stable.

Spot gold rose to $789.90 after having fallen nearly three dollars on Thursday due to a drop-off in the crude oil price.

Speculation-fuelled buying pushed the price right up to the $800 dollar mark before people cashed in on the rise in value yesterday, with today's gold investors taking the metal's price up in a steadier way – reigniting hopes that it could creep above the next psychological barrier.

"I wouldn't be surprised if it went through $800," David Moore, commodity strategist at the Commonwealth Bank of Australia, told Reuters.

"I still think in the longer run it probably won't sustain those levels but in the near term, I think that's quite possible. The gold price has been higher than I thought it would be," he added.

As more people look to buy gold, it is not only spot gold and gold future prices which benefit, with suppliers also reaping the rewards – as seen by a 3.4 per cent rise in Australian miner Newcrest's shares in response to this week's price hikes.