Gold Coin Prices Remain Stable As The United States Dollar Falls To One-Month Low
June 7, 2011 – The gold spot price is showing signs of stability as investors continue favoring the metal over a weakening United States Dollar. As of midday, the gold spot price is sitting at $1,545 per ounce, up .10% for the trading day and also up 26% in the last 365 trading days. It appears that many investors are eagerly awaiting direction from Fed Chairman Ben Bernanke who will be giving a speech regarding the current US economic outlook as well as clues about future policies.
Earlier today, the head of the international payment department at China’s foreign exchange said that Beijing should guard against further risk by limiting the excessive holding of dollar dominated assets. The United States Dollar has already struggled throughout 2011 as investors fear that the Federal Reserve will keep real interest rates low for an extended period of time in order to protect economic growth. In turn, wise investors are purchasing gold coins because the precious metal tends to have an inverse relationship with the dollar.
Gold coin price projections remain bullish, with Standard Bank analyst Walter de Wet projecting a break past the current $1,550 per ounce mark, possibly surpassing all-time record highs in the near future. Also, UK based precious metal consultancy GFMS is projecting that gold and other precious metals will continue retaining their upside potential throughout 2011, with negative real interest rates being their primary driver. Are we just in the middle of one of the most bullish gold cycles in history?
Stewart Lawson
Senior Staff Writer - Gold-Coin.com
