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The gold bugs must be happy. Gold just reached a 17-year high.

The yellow metal finally broke the $460/oz. barrier. Some analysts think it will go even higher.

Citigroup analyst John Hill said he was bullish on gold due to investors' jitters over oil, inflation and the greenback.

"We expect gold to work higher, and fully expect a test of $500 in the coming months," Hill said in a report. Citigroup also forecast gold will average at least $450 in 2006/07.

Gold may indeed go higher, but I wouldn't bet on it. The long-term trend is still down. All gold rallies start differently, but they all end the same way.

Posted by edelfenbein at September 16, 2005 1:24 PM