Safe haven precious metals are rebounding today as wise American investors are deciding to buy gold yet again as a hedge from long-term inflation that we are just barely beginning to see. The overall weakness with the United States Dollar continues, and many investors and market analysts are questioning whether the United States economy is strong enough to see higher interest rates by the end of the year. The Federal Reserve has already mentioned that they plan on increasing interest rates before 2010 if the economy shows signs of recovery, yet it appears that the financial crisis only worsening at the moment, with the dollar and many large stock indexes heading in the downward direction. Wise investors typically buy gold during these types of economic situations because the metal has proven its preservation potential during unstable times, plus the metal has thrived during both an inflationary and deflationary environments.
By around 11:40 AM Eastern Standard Time, the gold spot price is climbing on the New York Mercantile Exchange as American investors are deciding to buy gold as a hedge from a weaker United States Dollar, and currently the metal is trading at $954.80 per ounce, increasing $4.20 for the day and also increasing $38.70 in the last month. Short-term projections are saying that the metal could be headed in the upward direction yet again, possibly surpassing $965 per ounce, which is a key resistance level at the moment. This being said, make sure you keep a close eye on spot prices along with the Dollar Index because any further problems with the fiat currency could cause significantly higher spot prices in the near future.
John Halloran
Senior Gold Specialist - Buy-Gold.org
