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June 9, 2009 - The United States Dollar is retreating today after two consecutive days of strengthening, and it appears that safe haven demand for precious metals is increasing yet again, thus causing many market analysts to update their gold investment forecasts to better suit the current economic scenario. The main reason why the dollar is falling today is because the Federal Reserve just mentioned that they would increase interest rates before the year’s end, and this creating speculation about a high inflationary period that we could face much sooner than expected. In the beginning of the year, gold investment forecasts predicted a very similar scenario, and that is why many of them said that we could see $1250 per ounce by the end of the summer if the dollar continued to flounder. Although the metal is not currently near that level, anything could happen, especially since the gold spot price increased more than 800% in the late 1970’s when the Federal Reserve increased interest rates during a similar inflationary period.

By around 1:45 PM Eastern Standard Time, the daily market spot price of gold is showing a minor increase, currently sitting at around $953.60 per ounce, moving up 2.90 for the trading day and also moving up $37.40 in the last 30 trading days. I highly recommend that you keep a close eye on short-term spot prices, especially since gold investment forecasts have said that summer would be a prime time for the metal. Don’t be surprised if spot prices surpass $1000 per ounce within the next few weeks.

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Arthur McGuire

Senior Staff Writer - Gold-Investment.info