Gold Prices Posted by James Randolph on February 09, 2009
Stimulus Tension Arises
February 9, 2009 – Gold prices lose some value today as a result of short-term selling, but the latest predictions are saying that the metal could see a significant rebound after more detailed news of the upcoming stimulus plan becomes released. American citizens are eagerly awaiting President Barack Obama’s $819 billion stimulus and bank plans that are pointing towards tomorrow being the final day for decision. Early Tuesday the Senate will vote for or against these plans, which could either make or break the United States economy. This increased tension could cause gold prices to rise in the upcoming weeks as investors prepare their safe haven assets for the worst to come. The future could be dangerous, especially with the massive amount of inflation that more than $11 trillion in debt could cause to a currency. It’s very probable that the fate of the United States Dollar will be dependent on what happens in the next few days. Let’s hope all goes well.
Today we’re seeing small drops in the gold prices, with the spot price trading at around $900 per ounce, a drop of $11.40 or 1.25% for the trading day but still a $58.00 or 6.89% increase in value in the last 30 trading days. The projections are definitely looking positive and companies such as UBS and Goldman Sachs have just raised their prediction of $700 per ounce into the area of $1000 per ounce due to the uncertainty in the economy. I wish you the best luck when investing in precious metals.
Senior Staff Writer – Certified Gold Exchange