GOLD LOOKING FOR $500

"It seems almost inconceivable that we won't see $500 very soon, but it may have just done a bit too much this week" said John Reade, precious metals analyst with UBS Investment Bank.
Reade has just revised up his one-month average price target for gold to $465 an ounce from $440 previously. He, along with several traders and other analysts, said sell orders were building at $495 to $500 an ounce.
They said if gold did not manage to punch through $500 today or Wednesday, it may attract selling if U.S.-based investors decide to take some profits ahead of a long holiday weekend.
We continue to find it difficult, if not impossible, to justify the strength of the gold price with respect to any underlying economic relationship," he said, referring to a strong dollar, weaker oil prices and a massive surplus in the gold market.
"Nevertheless, the strength of the recent price action over recent days has been very impressive and against this background further gains are likely."
Barclays Capital estimated flows of money into commodities by U.S. mutual funds had risen 7 percent to $4.9 billion so far in 2005.
Another new product started trade Tuesday, with the Dubai Gold and Commodities Exchange launching a gold futures contract.
LONDON (Reuters) - Gold moved closer to the fabled $500-an-ounce level not visited since 1987 on Tuesday as investors shunted more money into the metal, but profit-taking ahead of a long weekend in the United States could prove a drag.
LONDON (Reuters) - Oil rose a dollar Tuesday on expectations colder temperatures in the Northern Hemisphere will ignite heating fuel demand after weeks of unseasonably warm weather.
U.S. light crude for January delivery rose $1.01 to $58.71 in electronic trading. The contract rose 49 cents Monday, helping the market bounce back from Friday's five-month low

NEW YORK (CNNMoney.com) - Here's what consumers can look forward to when the midnight bell-ringing comes to a stop: sharply higher home heating bills, holiday credit card bills, rising interest rates -- and now what looks like a slowing real estate market.
Consumer spending could suffer in 2006Cooling real estate market could finally force consumers to pull back. The impact could be huge (NOT BULLISH FOR COMMODITIES IMHO)