, IncDecember 14, 2009 – The current gold price of $1126.80 is the focus of many financial analysts’ attention at the moment, because the recent two-way fluctuations of the gold spot price have created widespread questions about which way gold prices could move in the near future. The vast majority of long-term projections for gold are bullish, but last week taught us that anything can happen in this market.
Gold prices have been on the rise since 2001, and many economists have called for higher gold prices once our Federal Reserve starts to raise its key lending rate, which has remained near zero for an overextended period of time. In the 1970s, higher interest rates meant higher gold prices, because gold and other commodities historically tend to increase in value with inflation of US currency.
Many nations have increased their gold holdings lately, but China and India have led the charge. Most recently, India’s central bank purchased 200 tons and $6.7 billion worth of gold from the International Monetary Fund (IMF) on November 3. This move helped the gold price listed on the COMEX division of the New York Mercantile Exchange (NYMEX) to escalate to $1227, although recent bouts with profit-taking by some short-term investors have reduced the gold price somewhat.
The gold price has increased 36% in the last 365 days, and most economists agree that the future of the gold spot price hinges on our economy’s performance and the Fed’s handling of interest rates. If you believe that our economy will continue to struggle and you want to protect yourself from a future inflationary cycle, contact GoldPrice.net or one of the nation’s reputable gold exchanges to protect and grow your wealth during these unsteady financial times.
Stewart Lawson
Senior Staff Writer - GoldPrice.net
