Less investors are buying gold today as global stock indexes see some increases after the Federal Reserve decided to leave the size of the central bank’s buyback program for the United States government debt unchanged and also said that the economic contraction “appears” slower. This is causing small risk appetite as opposed to safe haven demand, but for some reason or another, several investors are not taking in the consideration the long-term inflationary pressures that we may face along with the gross domestic product that is contracting at a dangerous rate. The Federal Reserve will continue to purchase toxic assets with overprinted United States Dollars, and market projections are saying that this will wither way at the dollar as a result of increasing inflation while at the same time urging wise investors to protect their long-term spending power by buying gold. The recession is nowhere near over despite the latest comments from government officials to boost confidence in our economy.
By around 10:30 AM Eastern Standard Time, it appears that American investors are buying gold in significantly lower quantities, and this has caused the overall demand to pull the daily market spot price down to $883 per ounce, falling $15.30 or 1.70% for the trading day yet still gaining $6.40 or .73% in the last 365 trading days. Short-term and long-term projections are looking bullish, yet they are dependent on investor sentiment about the future of this financial crisis. This being said, it’s important that we keep a close eye on any economic data that may create optimism or pessimism about precious metal investing.
John Halloran
Senior Gold Specialist – Buy-Gold.org
