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May 8, 2009 - The gold spot price is increasing today for the fifth consecutive trading session, and it appears like it will be closing the week off on a monthly high despite a strengthening United States Dollar and higher stock indexes. Just yesterday, the European Central Bank cut its benchmark interest rate to a record low 1% and they also announced further quantitative easing measures by deciding to purchase $81 billion in bonds and toxic debt. Several market analysts believe that this may push inflation down the road, and this could be beneficial for the gold spot price that historically thrives during both inflationary and deflationary economic environments. In other news, the United States unemployment rate has climbed to 8.9%, which is the highest we have seen since September 1983. According to several economic experts, the 10% unemployment benchmark signals that a country is officially in a depression cycle, and we are only 1.1% away from that.

By around 2 PM Eastern Standard Time, the gold spot price is extending its gains for the week, currently trading at around $914.70 per ounce, increasing .52% for the day, increasing 3.94% in the last month and also increasing 3.59% in the last year. Next week could be an interesting time for investors because financial markets and commodities may continue with their traditional correlations that are currently not apparent due to the tug-of-war between optimistic and pessimistic investors. This being said, don’t miss the opportunity to diversify into gold if you believe that the spot price could continue to increase if the economy worsens.

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Arthur McGuire

Senior Staff Writer – Gold-Investment.info