Posted by Adam King on June 02, 2009
Gold Versus The Dollar
June 2, 2009 – Gold investment demand is increasing yet again today as investors from London to the United States are purchasing the metal in substantial amounts in order to hedge their hard-earned wealth from the weakening United States Dollar. Wise investors are currently turning to a gold investment as their alternative to mainstream assets like stocks, bonds and real estate because the metal has been forecasted to outperform markets that are tied directly to the strength of the dollar. Several market analysts are saying that short-term movement with the metal will continue to track the dollar because it appears that the fiat currency is the key factor that is driving gold at the moment. The tug-of-war between optimistic and pessimistic investors continues, while some Americans believe that the worst of this financial crisis is over while others believe that the worst is still to come. No matter what ends up happening with the economy, many financial institutions and reputable market analysts have said that a gold investment could be a wise decision for those who seek both profit and wealth preservation, because the metal historically increases in value during times of economic distress and even economic recovery.
By around 12:45 PM Eastern Standard Time, the daily market spot price of gold has officially breached the $980 per ounce resistance level, and it currently sits at around $982.10 per ounce, up $7.50 for the trading day and also up $96.30 in the last 30 trading days.
Senior Staff Writer – Certified Gold Exchange
US Gold Market