Bernanke may not believe gold is money, many individuals and investors clearly disagree

The gold price rose toward $1,600 per ounce, rising as high as $1,594 late Thursday evening. The price of gold is on pace to rise for the ninth consecutive trading session on the back of a surge in investment demand for gold bullion, gold exchange-traded funds, and futures contracts tied to the gold price.

While Bernanke may not believe gold is money, many individuals and investors clearly disagree. With gold prices at new highs and on pace for their 11th consecutive annual advance, it is clear that the marketplace has sided with over 5,000 years of history that suggest gold is in fact money, rather than with a central banker who believes money can be created with a printing press.

In terms of the gold price outlook moving forward, TD Securities’ Andrew Spence wrote in a note to clients that “Gold reached a marginal new high this morning and the basic chart set up for the market looks quite constructive from a technical point of view…Trend momentum, as reflected by the DMI oscillator, suggests strongly bullish trend strength across a range of timeframes. That suggests an ongoing bias towards strength and that counter trend dips are likely to be relatively shallow and short-lived.” As a result, the firm predicted the gold price may “extend towards $1800 in the next 3-6 months.”