Gold Recovers as USD Rally Slows
December 24th, 2009 Posted in In-Depth Analysis
Gold prices recovered over the past two days as the rally in the USD halted after the release of a disappointing New Home Sales report yesterday. With the greenback under pressure and extremely low levels for Gold, investors have taken advantage of the low prices to return investing in Gold. Gold for immediate delivery gained $17.05, or 1.6% to $1,104.60 today.
Since Gold levels and the USD tend to have an inverse relationship, Gold pulled back in recent weeks as investors have turned to the Dollar after the release of several better than expected economic figures. These boosted confidence in the U.S economic recovery and expectations the Federal Reserve will tighten monetary policy and raise interest rates earlier than expected. The loose monetary policy has been instrumental in the rise in Gold levels this year.
