July 7, 2009 – Today it appears that more American investors are investing in gold as uncertainties about the future of our economy linger. The United States Dollar Index is strengthening today while major stock indexes are taking significant steps backwards based on an overall market standstill that may end after the upcoming G-8 meeting, which starts tomorrow. Historically, Americans begin investing in gold as a hedge from economic dangers, yet the latest speculation is saying that the financial crisis may end by 2010, thus there appears to be higher demand for riskier assets like stocks and slightly lower demand for safe haven assets like gold, but maybe not for long. Several leading market analysts are predicting that short-term fluctuation with gold may continue to seek direction from the United States Dollar, thus it is very important that we track the Dollar Index and its inverse correlation with spot prices in order to potentially determine market movement within the next few days.
By around 1:20 PM Eastern Standard Time, the gold spot price is climbing as more wise Americans are investing in gold as a hedge from inflationary pressures that may begin hammering away at the United States economy in the near future, thus the higher demand has pushed the metal to $927.40 per ounce, up $2.80 or .30% for the trading day. The latest short-term market forecasts are saying that spot prices may continue to trade within the range of $900-$980 per ounce until a weaker Dollar Index creates higher safe haven demand.
John Halloran
Senior Gold Specialist - Buy-Gold.org
