Traders warn gold price is too high

Futures traders and arbitrageurs are warning that an increasing number of investors are taking positions in "fool's gold" following the rising price of the real thing, which now trades above $300 per ounce, levels not seen since 1998 according to Bloomberg data. Following terrorist attacks in the US, virtual war in South Asia and the Middle East, and the global economic downturn with persisting poor returns from equities in the G7 countries, gold has taken on new lustre among investors tired of volatility. Historically, gold is trading well below the $400 per ounce price it co...