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April 22, 2009 - Current spot prices are showing increasing safe haven demand as further signs of inflation and crumbling stock markets is creating speculation that the United States financial crisis may not be over just yet. A recent report from Reuters.com showed that the world economy has fallen into a severe recession and also that the International Monetary Fund has cut its forecast for global growth. This alone is causing large safe haven demand, as wise American investors simply want to preserve their wealth with a stable asset that is not in danger of becoming devalued by fiat currencies such as the United States Dollar. The overall strength of the dollar and equity markets are weakening, and this is causing several market analysts to project darker days down the road in the event that more negative sentiment creates fear in the minds of investors. The current spot prices are reflecting this negative sentiment and they may increase in the near future as the financial crisis continues to worsen

By around 2 PM Eastern Standard Time, current spot prices on the New York Mercantile Exchange are showing moderate signs of gains, and the metal is currently trading at around $889.60 per ounce, jumping up .71% for the day yet still falling down 2.9% in the last year. Short-term projections are expecting interest rates to become one of the main drivers of gold spot prices, so keep a close eye on the overall strength of banks and their rates in order to maximize investment potential in the upcoming weeks.

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Arthur McGuire

Senior Staff Writer –-Gold-Investment.info