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August 13, 2009 – The price of gold is further extending its gains today, climbing significantly after the United States Dollar Index tumbled as a result of an “improved outlook” for global economies, which in turn has sparked speculation about long-term inflation being much worse than expected. Since the beginning of the year, market analysts have forecasted that low interest rates and massive overprinting of dollars could create dangerous inflation down the road, and with the Federal Reserve just recently mentioning that they will keep interest rates at current lows, it’s no surprise that the price of gold continues to increase as more and more wise investors are turning to safe haven markets in order to potentially protect themselves from the uncertainties that lie ahead in our economy. The current price of gold has risen to $956.40 per ounce, jumping up $9.20 for the day, and also jumping up $130.70 in the last year.

The price of gold fluctuates on a daily basis as supply and demand pushes and pulls the metal’s value. Since 2001, safe haven demand has increased exponentially, thus the metal has increased more than 300% since then. Several bullish market analysts have predicted that the spot price could continue increasing within the next few years, but only if inflation begins to manifest in our economy. Some of the most interesting projections are forecasting $1500 per ounce and higher. Do you think that higher inflation could result in higher spot prices within the next few years? If so, now may be a good time to fully explore your options with a gold diversification.

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Arthur McGuire

Senior Staff Writer - Gold-Investment.info