Gold Update

When looking at the recent run up in gold, traders wonder if history is repeating itself.

Last March, when gold began to edge higher, traders blamed the gains on Mideast jitters and inflation.

Iran, Iraq, oil, inflation - all combined has global investors looking at gold as a solid bet, said one trader LAST YEAR.

Gold rose from $533.60 on March 10, 2006 to a 25-yr-plus high of $730.30 on May 12, 2006 - nearly 200 points in just two months.

By mid June, gold had falled back to $543.

This year, gold's rise has been far more orderly than the 2006 rally, which bodes well for the sustainability of the current move.

Gold has risen from a low of $601.70 Jan 5 to Friday's nine-month high at $688.20.

There could be quite a bit more upside for gold.
The precious metal to test $800 later in the year.
Spot gold holds currently at $682.50.