August 18, 2009 – The gold price has officially rebounded today after seeing a moderate contraction yesterday that was being led by a stronger United States Dollar Index, yet as the fiat currency begins to weaken today, it’s no surprise that investors are turning to safe haven assets like gold in order to protect their hard-earned wealth from the problems that may lie ahead in our economy. Weak negative economic data has hurt the Dollar Index while at the same time supporting the gold price, and it appears that many American investors are reacting quickly with their investing decisions as optimism and pessimism continues to create instability with investment markets. Inflationary pressures remain in the spotlight today, and it appears that several market analysts are forecasting mixed predictions; with some saying that inflation could grow significantly within the next few years while others saying that inflation may not be a severe problem in our economy. No matter what happens within the next few years, it always helps to own a few gold bars and coins in order to protect ourselves from inflation, deflation and anything in between.
By 1 PM Eastern Standard Time, the gold price is headed upwards as the United States Dollar Index tumbles after yesterday’s solid gains, and today’s higher safe haven demand has pushed gold to $937.20 per ounce, up $4 or .43% for the trading day, down $.50 or .05% in the last 30 trading days, yet still up $151.20 or 19.24% in the last 365 trading days. Happy investing and don’t forget to closely track the powerful inverse correlation between the spot price and the Dollar Index in order to determine short-term market movement.
Senior Staff Writer – GoldPrice.net