Safe haven demand is continuing to increase today, and it appears that many wise investors are still deciding to purchase gold coins as their ultimate hedge from the uncertainties that lie ahead in this financial crisis. The gold spot price is increasing today for the second consecutive trading session based on speculation that the Federal Reserve could continue purchasing treasuries, which may spark long-term inflation. Historically, investors purchase gold coins as a hedge from inflation because the metal tends to increase in value when dollar-backed assets are decreasing in value. With inflationary pressures becoming more and more apparent by the day, it only makes sense that a large-scale shift into safe haven precious metals would occur. It is crucial that wise investors keep a very close eye on the United States Dollar Index because it will most likely provide direction for other markets in the short-term. The latest market projections are saying that further weakness with the dollar could drive more investors to purchase gold coins, which in turn may push the spot price beyond its current resistance level of $950 per ounce.
By around 2:30 PM Eastern Standard Time, it appears that the gold spot price is slowly but surely increasing as investors are currently flocking into the market in order to potentially profit from a safe haven rally that may begin by the end of the week. The metal is currently trading at around $930.30 per ounce, up $4.50 or .49% for the day and also up $40.90 or 4.60% in the last year.
John Halloran
Senior Gold Specialist - Buy-Gold.org
