Daily Gold Coin Update
May 20, 2009 – Recent economic conditions are without a doubt looking considerably worse than market analysts had expected earlier in the year, and it appears like safe haven demand is spiking considerably at the moment, thus increasing the value of gold coins in both bullion and certified investment grade rare varieties. The gold spot price is climbing for the second trading session in a row as economic data is showing higher inflation across-the-board in both the short-term and long-term perspectives. Bullish market analysis believe that further spikes in safe haven demand may begin pushing the spot price beyond all technical resistance levels into the $1000 per ounce area and possibly close to or surpassing the all-time record high. This is no surprise, especially since the United States Government and Federal Reserve have begun significant quantitative easing measures that typically always lead to inflationary pressures after all is said and done. The value of gold coins may appreciate considerably in the next few months, and if the projected high of $1200 per ounce is achieved, many precious metal investors would be quite happy with their diversification.
By around 1:10 PM Eastern Standard Time, the value of gold coins is extending gains as the spot price has officially begun a small rally after breaching its $930 per ounce resistance benchmark, and the metal is currently climbing to $936 per ounce, increasing $11 for the day and also increasing $51 for the month. Short-term market fluctuation with the spot price has been inversely correlated with the United States Dollar, so it may be wise to track the Dollar Index in order to maximize investment potential at the moment.
Arthur McGuire
Senior Staff Writer – Gold-Coin.com
