Buying Gold Posted by James Randolph on June 29, 2009
A Slow Start To A Long Week
June 29, 2009 – Investing markets are seeing some staleness today, and it appears that less American investors are buying gold as a result of a flat United States Dollar that typically leads the way for higher or lower gold spot prices. The metal has fallen for the first day in five, making it a 4.3% decrease this month, yet several market analysts are expecting a rebound within the next few days if the United States Dollar continue showing short-term weakness, thus increasing safe haven demand for a hedge against economic and financial risk. Historically, wise investors begin buying gold when the economy is facing serious problems, and with the United States approaching $12 trillion in debt with nearly 10% nationwide unemployment, it definitely makes sense that safe haven demand is slowly but surely increasing. The latest short-term market projections are forecasting that record low US interest rates could increase the demand for precious metals and other safe haven assets, thus we could see many more wise investors buying gold within the next few weeks as the dollar begins to lose its appeal.
By around 3:30 PM Eastern Standard Time, the gold spot price is only showing a minor decrease today after fluctuating between losses and gains during the late-night trading hours. Currently, the metal is sitting at $938.50 per ounce, down $.50 for the day, yet still up $11.60 in the last year. It is highly recommended that investors keep a close eye on the spot price correlation with the Dollar Index because they will most likely continue trading in their typical inverse directions.
Senior Staff Writer – Certified Gold Exchange