Daily News

May 13, 2009 - Gold spot prices are the global method of determining the value of the precious metal on a daily basis based on how much supply and demand there is on a particular day. The spot prices fluctuate similar to a weight scale, basically as demand increases, supply decreases, which means higher prices and vice versa. Lately, there have been several external economic factors that have been affecting the price of gold, such as the United States Dollar and importance economic data. The United States dollar plays a big role because if it weakens, gold becomes cheaper for investors with other currencies. Important economic data is also very important because it creates either optimistic or pessimistic sentiment about the future of the United States economy, thus creating either safe haven demand for precious metals or risk-taking demand for stocks and other mainstream assets. Today it appears like safe haven demand is on the rise as wise investors are beginning to shift away from mainstream financial markets in exchange for physical possession gold bars and coins.

By around 3:20 PM Eastern Standard Time, the gold spot prices are increasing moderately for the trading day, currently sitting in the area of $925.80 per ounce, moving up .31% today and also moving up 6.89% in the last year. Short-term market projections are saying that the metal may experience some slight resistance at around $930 per ounce, yet significant momentum beyond that level could push prices into the $950-$960 per ounce range.

Daily Updates Archive

Arthur McGuire

Senior Staff Writer – Gold-Investment.info