The price of gold exploded Friday, leading a large number of commodities to a big rebound. At the close of the day, gold prices had settled at $895.80 per ounce for February delivery - a gain of $37 - after passing the $900 barrier for a short time.
The gold market hasn't enjoyed those prices since early October. An number of other precious metals, along with grains, rose along with gold.
Investors should continue to move out of U.S. dollars and buying gold as futures and physical gold will continue to move upward.
Gold prices have been held back as deleveraging and forced liquidation forced the precious metal to be held down for some time. It appears some funds and foreign governments are coming back into the commodity market as those positions unwind.
It's hard to tell where the price of gold will end up, but we can be sure the buying of gold will continue as confidence in the U.S. dollar continues to fall.
Other commodities followed gold's lead, as other precious metals like silver and copper enjoyed solid gains.
Grains responded to the gold rally as well, with wheat increasing by 16 cents a bushel to $5.8275, and corn for March also enjoyed a small gain, growing by three cents to $3.905 a bushel. Soybeans didn't fare as good, dropping 3 cents a bushel to $10.09.
Light, sweet crude oil also moved lockstep with the other sectors, gaining farely significantly by $2.80 to settle at $46.47 a barrel.
Gold will continue to increase in price as it did today, with inflation moving many of the other commodities up with it.
As the U.S. dollar continues to be pressured from the bailouts and debt load, gold will be the place of safety investors look to.
When inflation hits, gold prices could soar to extraordinary levels, as investors migrate to the traditionally safe haven it has always been.
The trend will be to put more funds into gold as foreign countries shun the weakening U.S. dollar, losing confidence in it's ability to remain a strong currency.
Gold futures will be the commodity of choice going ahead.