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May 11, 2009 - The current spot price is declining after seeing some significant increases in value last week, yet market analysts are expecting the metal to continue its gains this week as the United States Dollar and American equity markets flounder based on worsening financial crisis fears. Still, there appears to be a prominent tug-of-war occurring between optimistic and pessimistic investors due to several market uncertainties. Some investors and market analysts are saying that the financial crisis could end sooner than expected after the latest bank stress test results while others feel that the financial crisis will not end soon based on inflationary pressures that may create a domino effect of economic collapses around the world. The current spot price is reflecting this tug of war and it appears like the United States Dollar, gold and American stock indexes are all headed in the downward direction based on this uncertainty.

By around 3:40 PM Eastern Standard Time, it appears like several bargain-hunting investors are taking advantage of the lower current spot price that sits at $912.60 per ounce, dropping .41% for the day yet still gaining 3.1% in the last year. Several short-term market projections are saying that the metal may continue trading in the $910 and $920 range until significant momentum pushes the spot prices into the resistance level of $930 per ounce. Surpassing this $930 per ounce benchmark could signal a powerful rally that has the potential of reaching $1000 per ounce or higher depending on other vital economic factors.

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Arthur McGuire

Senior Staff Writer – Gold-Investment.info