Gold Prices Predicted to Fall in 2010

December 29th, 2009 Posted in Chief Analyst Special Report

Greg Holden

Name: Greg

Email:

Yesterday’s expected decline in the value of the US Dollar did indeed take place, but not nearly as sharp as some were expecting. A mild drop against the Euro and British Pound occurred during the opening of the American markets yesterday, and our technical charts appear to be showing that the greenback’s downturn could have already finished.

There is the possibility that reports yesterday of a possible buy-up of US Dollars before the year ends helped stabilize the currency and prevented it from dropping too far. Today’s CB Consumer Confidence report has some investors anxious as a positive result could cause this buy-up of dollars before year-end as they prepare for a rise in interest rates possibly sooner than expected.

Also, as we put Christmas shopping behind us, there may still be a surge in post-holiday sales remaining, but the boost in Gold prices heading into the holidays has apparently come to an end. We saw Spot Gold prices climb above $1,200 an ounce in the past month and a half, but the precious metal now sits steadily near $1,100 an ounce. Will Gold prices spike back up? Or will they remain in a downward posture?

Believe it or not, the chance that Gold prices will continue to rise in early 2010 is possible, but less likely now than many were forecasting 2 months ago. The strength of the US Dollar may take off in the New Year as nations attempt to anticipate the expected rise in interest rates which will no doubt happen at some point in the coming year. Once the USD takes off, Gold will plummet back down to earth, and Silver and Platinum prices won’t be far behind. I say, make it your New Year’s resolution to take advantage of this price movement. Open your account now and get ready for these coming profits!