Daily News

August 10, 2009 – Gold spot prices have fallen to ten-day lows based on a slightly stronger United States Dollar Index and a small boost in confidence with American equities. According to several market analysts, the current tug-of-war between gold spot prices and the United States Dollar may continue as the majority of investors are either flocking to riskier dollar-backed assets like stocks and bonds or safe haven assets like gold and silver. The current gold spot price is trading at $948.30 per ounce, down $7.50 for the day, yet still up $92.40 in the last year.

In other news, the United States Federal Reserve is planning a meeting tomorrow in order to discuss potentially increasing interest rates within the next few months. Some interesting short-term projections have forecasted that higher interest rates before a true economic recovery could be very dangerous for our financial system, especially since inflation in particular may spark as a result. For those investors who don’t know, the last time that the United States faced a high-inflationary economy was in the late 1970’s. This inflation sparked skyrocketing safe haven demand for gold, which in turn drove up spot prices more than 800% in two years. Several market analysts believe that similar fluctuation may occur again, especially since the United States is in an even worse financial crisis, plus our nationwide debt is approaching $12 trillion, the highest it has ever been. If you would like to learn more about gold spot prices, feel free to browse this website or visit www.GoldPrice.net.

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Arthur McGuire

Senior Staff Writer - Gold-Investment.info