June 29, 2009 – The gold spot price is taking a very small step backwards today as less investors are deciding to buy gold bullion based on stale movement with the majority of investing markets at the moment. The week has started off slowly as the United States Dollar stays flat and mainstream stock indexes show very little upward movement. The latest economic news is showing that China has mentioned that they will not be making any sudden changes to their dollar reserves, yet they may buy more gold bullion as their ultimate backup in the event that the fiat currency faces problems down the road. Now that’s a smart idea. Historically, wise investors buy gold bullion as a hedge from both inflation and deflation, and with the current financial crisis hammering away at fiat currencies, it’s no surprise that safe haven demand for gold has increased considerably in the past few years. Today’s market movement is simply a result of weak investing markets, so don’t let this fool you into believing that the gold rally is at the end of the road, because this may just be the tip of the iceberg.
By around 2:45 PM Eastern Standard Time, it appears that less American investors are deciding to buy gold bullion as mainstream investing markets continue showing short-term staleness as a result of the latest economic data having very little impact on the United States Dollar and stock indexes. Currently, the gold spot price sits at $938.80 per ounce, down $.20 for the trading day, yet still up $12 in the last 365 trading days.
John Halloran
Senior Gold Specialist - Buy-Gold.org
