July 2, 2009 – The gold spot price is turning downwards today, and it appears that less American investors are flocking to gold diversifications as the United States Dollar strengthens despite tumbling stock market indexes. Just yesterday, the metal increased in value nearly 2% as the dollar fell versus other major currencies based on speculation that China would begin to debate a new reserve currency at the upcoming G-8 Summit, yet today a Chinese Foreign Ministry official mentioned that he was “not aware” of such plans. Within the past few weeks, investing markets have been fluctuating heavily as economic data and speculation has caused mixed sentiment about the future of investing markets. Gold diversifications are currently headed for a fourth weekly decline in five weeks based on this instability, yet several market analysts are expecting powerful rebounds within the next few weeks as the United States Dollar slowly but surely begins to feel heavy inflationary pressures as a result of trillions of overprinted dollars. Fortunately, the metal has a history of thriving during inflationary economic environments, and the growing inflation that we have been seeing within the past few months could just be the tip of the iceberg.
By around 1:40 PM Eastern Standard Time, the majority of gold diversifications are losing value as the United States Dollar Index continues to increase, thus inversely pushing the spot price of gold down to $930.50 per ounce, a decrease of $9.80 or 1.04% for the day, and also a decrease of $44.10 or 4.52% in the last month.
John Halloran
Senior Gold Specialist - Buy-Gold.org
