, IncDecember 4, 2009 – Falling gold prices were seen today on the major exchanges after the COMEX gold spot price retreated from $1200 levels. At 1pm EST the gold spot price was listed as $1175.90, which is a 2.7% decrease for the trading day. Get live gold prices by calling us or signing-up here.
Market analysts projected a slight pullback in precious metal prices this week because the rally has marched on unhindered for weeks. Generally, profit-taking will take place after a rally of a few days, but the falling dollar has driven the gold spot price higher despite some mild profit-taking by short-term investors.
Falling gold prices are most likely temporary because our government is going to raise interest rates soon and this will repress the dollar’s worth substantially. Many economists have called for the gold spot price to rise to $1700 in the current cycle, throughout the same time that stocks, bonds, and cash accounts could become devalued significantly.
The rising gold spot price has been almost exclusively due to the fact that our dollar could collapse. Currently, investors are seeking safe-haven assets that can be stored privately and used for goods and services in lieu of fiat currency.
Falling gold prices are not a reason to exit the market unless you are simply a short-term investors looking to take profits and convert back to cash. If you desire to protect your wealth with gold and escape the troubles of the greenback, rest assured that we are in all likelihood, near the very beginning of a long-term inflationary cycle that will result in higher gold prices.
Take advantage of falling gold prices by strengthening your position in the gold market, or educate yourself by requesting your free information kit below.
Stewart Lawson
Senior Staff Writer - GoldPrice.net
