Tuesday, 20 Oct 2009

Gold Slides From Today's Highs

As we have seen in recent weeks, Gold prices have risen and risen. Much of this bullish behavior for gold is owed to the continuing economic recovery and the weak Dollar. Earlier today, we saw prices hit as high as $1067.85. However, prices have slid about $11 Dollars from this high, to $1056.40. This goes against what many analysts have recently been forecasting. Is this the end of the bullish streak for Gold?

It seems that Gold prices are very highly correlated with the value of the U.S. Dollar. Lately, whenever the Dollar goes down, Gold prices seem to go higher. This has been the trend in the past month, as economists foresee a far weaker USD, and far higher Gold prices. However, this may be far fetched, as there are many factors that affect both the Dollar and the price of Gold.

Today's slump in Gold was largely owed to a strong USD, and a slump in value for higher-yielding assets. This was pessimism stemmed from much poorer data from the U.S. earlier today. This included poor results from the Building permits, PPI, Core PPI and Housing Starts. To take advantage of today's trends, it is recommended that you enter Gold in bulk, as late night trading approaches.