Gold Prices Stay Over $1,135

Updates gold price as of 2:48p EST

NEW YORK (TheStreet) -- Gold prices refuse to take a breather.

Friday is options expiration which historically leads to volatility and profit taking in gold, as investors readjust their positions. The U.S. dollar index was also continuing its mini rally from Thursday rising .61% to $75.74. These factors should put pressure on the precious metal, but gold prices were rising to $1,149.50 an ounce as funds keep investing in gold as an alternative asset. Gold delivery for December has traded as high as $1150.50 and as low as $1,132.50 at the Comex division of the New York Mercantile Exchange.

Most analysts say gold is overdone, yet every slight dip in prices has been supported by overwhelming long buying. "There are strong buyers with strong hands. They are buying and not letting go", says David Morgan, co-founder of Silver-Investor.com. "The fund managers are jumping on top of whoever it is who's buying in size. It might be a nation state, it might be a central bank silently, [or] it might be a country. We don't really know."

Morgan stands by the probability of a short term correction which some technicians think the market is already seeing with daily pullbacks in the gold price. "I think we are going to get a slight correction in the next few weeks and then we're probably going to restart the rally...I think we could see the $1, 250 mark into the first quarter of 2010."

Silver has now confirmed gold's rally by breaking the $18 resistance level which is a long term bullish indicator for gold. Silver prices were slipping 21 cents to $18.24 while copper was relatively unchanged at $3.07.