The gold spot price dropped below $1100 per troy-ounce levels on Wednesday, hitting a low of $1089, and leveling off at $1097.60, at around 11:30 EST. Today’s gold price influences are largely attributed to apprehensions surrounding Federal Reserve Chairman Ben Bernanke’s scheduled testimony before Congress this Thursday, as the world awaits any news about possible interest rate hikes. Bernanke is expected to speak about the Fed’s monetary policies, although no specifics have been aired. Interest rate hikes could negatively affect dollar values, which are already struggling against the Euro, so this suspense over Chairman Bernanke’s awaited testimony is subsequently among today’s gold price influences.
Another aspect of today’s gold price influences lies with the IMF’s (International Monetary Fund’s) 191.3 tonnes of surplus bullion. Assumptions are strengthening that the Reserve Bank of India (RBI) will purchase this gold, since India hasn’t made a large buy since October, when the gold spot price increased by $51 in a period of six days. Shortsighted analysts originally assumed that China’s strong economy would gravitate her central bank toward an IMF bullion buy, but China also possesses domestic gold producers as a resource. India doesn’t hold that same luxury, so RBI officials have been closely monitoring the gold market, but none will go on record about the bank’s intentions.
A great many tentative gold investors have been waiting for the spot price to recede below $1100 levels, and these buyers can avoid paying extortive retail prices for their bullion, and rare gold coins by contacting one of our friendly specialists today.
Ronald Stevens
