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June 24, 2009 - Gold spot prices are continuing their climb today, currently sitting at a six-day high as the volatile United States Dollar continues in its unstable pattern and speculation is arising about the Federal Reserve policy meeting that is occurring today. This Federal Reserve policy meeting could result in a positive outcome for gold spot prices in the short-term if they decide to continue with the $300 billion treasury-purchasing program. The only thing that could put a delay to significantly higher spot prices is if they decide to keep interest rates at the current rate. Higher interest rates during an inflationary economic environment have proven to be negative for dollar-backed assets and very positive for gold. For example, in the late 1970’s, the United States was facing a severe economic recession, and sure enough, the Federal Reserve increased interest rates, thus spiking safe haven demand for gold, which drove the spot price up more than 850% in value in just two years. In the event that history repeats itself during this financial crisis, wouldn’t you like to know that you have an asset like gold that could increase in value significantly while mainstream investment markets flounder?

By around 4 PM Eastern Standard Time, the gold spot prices are extending their gains for the second consecutive trading session as new investors continue entering the market, thus pushing the metal up to $930.10 per ounce, an increase of $4.20 for the day and also an increase of $40.60 in the last year.

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Arthur McGuire

Senior Staff Writer - Gold-Investment.info