Silver Coins
The Perth Mint of Australia
 

Gold Ends Lower, Short Term Prospects Less Rosy?

Bullion update ...Gold turned slightly south today as the dollar gained against the euro. New York spot gold went as low as $862.70 an ounce, but eventually climbed back to $870 an ounce to lose just $6 for the day.

Separate comments from Kansas City Fed President Thomas Hoenig and Treasury Secretary Henry Paulson would seem to signal the potential for gold’s further regress.

According to the Wall Street Journal, Paulson said the worst of the credit crunch may have passed and that the financial markets are emerging. Hoenig said late Tuesday that the Federal Reserve must be ready to raise interest rates in a timely manner given the “troublesome” inflation outlook.

Such statements tend to firm the dollar, and a stronger dollar generally lends itself to lower gold prices.

If there’s a saving grace for the yellow metal, it could be the European Central Bank’s meeting Thursday to discuss rates. A move on their part could reverse the euro/dollar move and that of gold.

Currently, however, there is some analyst talk of gold retesting the $845-$850 level.

Subscribe to CoinNews | Get Coin News by Email

If you've enjoyed this article, please share it by clicking on the button below, and selecting a service so others can find it too. Many thanks.

Bookmark and Share

Email this Article Email this Article                  Print this Article Print this Article


Related News

  • Bullion & Business Weekend Report - June 21
  • Gold Plunges Downward to Three-Month Low. Will It Fall Further?
  • Gold Nears $920 as Dollar Gains, Silver Below $14
  • Gold Down 2.4 Percent
  • CFTC Investigating Silver Market
  • Gold Down Sharply with Oil as Dollar Firms
  • Gold Falls Slightly with Rebounding Dollar, Silver Advances
  • Gold, Silver Rise for Day Two; Platinum Advances
  • Stocks Swing Back as Gold and Silver Slide Lower
  • Gold Ends Lower for Third Straight Week
  • Article Tags: .

     


    No Comments

    1. No comments posted yet

    Post a comment:

    Comments are moderated, and will not appear until an editor has approved them. (After you click to post your message, just leave this page.)