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June 30, 2009 - The current spot price of gold continues heading downwards today as the United States Dollar strengthens and mainstream stock indexes flounder based on serious instabilities with investing markets at the moment. Many investors know that the current spot price is largely dependent on the strength of the Dollar Index, because historically they both trade in inverse directions. One of the main reasons why the Dollar Index is strengthening today is because US home prices have fallen 18.1% within the last year, plus consumer spending has risen for the first time in three months despite rising nationwide unemployment and unstable investing markets. Despite the higher consumer spending, the latest economic data has shown that consumer confidence has fallen significantly, thus proving that more and more Americans are beginning to feel weary about the economy. Fortunately, gold historically thrives during times of economic instability, and the latest short-term market projections are still holding firm saying that the current spot price could rebound up to $1200 per ounce within the next two months.

By around 2 PM Eastern Standard Time, the current spot price of gold is continuing to fall side-by-side with major stock indexes despite a stronger United States Dollar, and the metal is currently trading at a solid $926.10 per ounce, decreasing $11.20 or 1.29% for the day, yet increasing $1.20 or .13% in the last year. The Dollar Index continues to be the primary driver for the spot price, thus it is highly recommended that wise investors keep a close eye on it in order to potentially determine the short-term future of gold.

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Arthur McGuire

Senior Staff Writer - Gold-Investment.info