, IncDecember 2, 2009 – Gold prices fluctuate every trading day based on supply and demand, as well as the strengthening or weakening US dollar. The gold spot price has posted a gain every year since 2001, and many economists have pointed out that gold could be at the beginning of a long-term valuation cycle similar to the one that was experienced during the high inflationary stage of the 1970s. That inflationary cycle lasted into the 1980s, and some gold investors who entered the market at the beginning made over 1000% before everything was said and done.
Gold prices have risen recently due to the international community’s scramble to locate and hoard substantial amounts of gold. The International Monetary Fund (IMF) sold 200 tons of gold to India’s central bank on November 3, and now that same bank and China’s national bank appear to be competing for the IMF’s remaining 200 tons.
The gold spot price has had no choice but to spike to keep up with the increased demand of household and institutional investors. Many US investors previously thought that the IMF’s 400 ton offering would subdue gold prices and allow investors to save a few dollars per ounce before the Federal Reserve raises interest rates and sets off a bout of inflation.
However, the quick removal of the first 200 tons from the open market sent gold prices soaring, and the mere speculation over the remaining ore has caused enough of a stir to elevate the gold spot price on the COMEX division of the New York Mercantile Exchange (NYMEX) to a new record high of $1217 earlier today. The gold spot price now resides at $1214.80, and you can get the latest info on gold spot price fluctuations by calling us directly or emailing us for free, live, spam-free updates.
Stewart Lawson
Senior Staff Writer - GoldPrice.net
