Learn How Gold Coin Prices Rise As The Dollar Weakens Directly At Gold-Coin.com
February 26, 2010 – Posting a second strong day, gold coin prices continue to rise as the dollar weakens on bad economic news. After opening at $1,090.55 yesterday, gold climbed to $1,117.80 at 5:00PM EST today, up $10.20 per ounce for the day on strong trading. By contrast, the US Dollar Index stumbled to 80.35, down 0.393 on the day, and giving up a strategic support point at 80.50.
With Greece still attempting to formulate a recovery plan before a meeting with the European Union members on March 16th, the dollar had been attempting to hold its gains. That support has been wiped out this week as Bernanke gave a gloomy report to Congress, unemployment suddenly surged upward and key economic indicators began showing the dollar’s weakness. Gold prices then used this news to break the two-month downtrend and move higher for February, gaining more than 3% over January and getting back on pace to move higher for the tenth consecutive year.
Bernanke’s dismal report on the state of the economy will likely help gold coin prices. Said executives at Investec Global Gold Fund, "we believe the Fed's reaffirmation that rates are likely to remain low for an extended period should be supportive of gold prices in the long term."
Gold’s Relative Strength Index of 58.84 is supportive of higher gold prices, as are the MACD and Full STO indicators, suggesting that gold is ready to trend upward. With the dollar weakening and the economy unstable, gold prices are likely to rise, making additional gold investment a potentially profitable move.
Michael Williams
Senior Staff Writer - Gold-Coin.com
