Healthy Financial Habits

Last week the staff at Healthy Financial Habits was certain that the price of gold would begin to fall and show signs of a temporary leveling. On Tuesday we received news that the United States economy grew 2.8% in the third quarter, less than what analysts expected. We also heard from the Federal Reserve last week giving indication that interest rates will remain low. These two announcements had a tremendous effect on the price of gold.

Each day the price of gold ratcheted up, closing at  $1192.80 on Thursday. Then of Friday we heard big news from Dubai. Dubai announced on Friday that they are having debt problems and can not guarantee all payment.

After this news was released the dollar index DYX increased and some investors began to sell off gold as they anticipated a drop in value. Gold reached a high of $1196.90 an ounce last week before plummeting over $20 an ounce, eventually closing at $1174.20 on Friday.

As the price of gold moves higher every week any news causes will cause investors to buy or sell at a moments notice. Right now it is uncertain exactly what the effects of Dubai’s debt problem will have on the global economy and the price of gold more specifically.

Because of the volatility in the global market gold prices could move in either direction as we learn of news from Dubai. With this being said, we believe that with no major news gold will drop off slightly during the first part of this week and eventually level off closing around $1165 an ounce by Friday.

So far this year gold has been up 33% and 13% this month alone. Many analysts predict that the price of gold will top out at $2,000 before we see a decline.

Check back with Healthy Financial Habits every Monday morning for your weekly gold price predictions. Here you will find current news, information and investment strategies that will assist you in making financial decisions. It is important to remember that consulting with a quality financial advisor is always recommended prior to making personal financial decisions.

Author: Greg Jackson

The day before many Americans celebrate Thanksgiving, investors and gold owners from all around also have something to be thankful for and that is a seemingly ever rising gold market.

For weeks now we have seen the price of gold increase dollars each day with no end in sight. Today was no exception. Yesterday, gold closed at $1,168.20 an ounce and as the market comes to an end today gold is up approximately $25 an ounce  hovering around $1,191.

Just when the staff at Healthy Financial Habits believed that the gold maret was in for a correction the International Monetary Fund announced that they will sell 10 metric tons of gold to the central bank of Sri Lanka today. India also stated that they may be purchasing even more gold to add to their purchase of 200 metric tons earlier this month.  As more gold comes off of the open market the supply is shortened.  Simply stated, gold prices will rise with a shorter supply and a higher demand.

When individual investing countries such as Sri Lanka and India buy large quantities of gold this signals that it may be a great time to buy. People believe that if banks are making decisions to purchase gold right now then it only makes sense to do the same.

As fears of inflation continue to brew in the United States more and more investors are turning to gold as a hedge against inflation. Today the United States dollar hit a 15 month low when it was revealed in the US central banks minutes that they consider the decline in the dollar as orderly. When they use the term “orderly” this indicates that they are content with the direction that the dollar is going and do not plan on doing anything about it.

The dollar is measured using the dollar index. The dollar index (DYX) weighs the greenback against a basket of 5 other currencies from around the world. The DYX is currently at $74.28 down $.79 and sitting at 15 month low.

Last week we heard a rare statement from Ben Bernake, the US Federal chairperson, indicating that the Federal Reserve was paying close attention to the US currency but did not indicate any action. We were told this week that interest rates will continue to remain low. Today we learned that the US central bank believes that the dollar is orderly.

Many people are losing faith in the dollar as the federal government is taking a hands off approach to the declining dollar. This raises fear of inflation and causes people to convert their cash to gold in order to protect their money against inflation.

Check back with Healthy Financial Habits every Monday morning for your weekly gold price predictions. Here you will find current news, information and investment strategies that will assist you in making financial decisions. It is important to remember that consulting with a quality financial advisor is always recommended prior to making personal financial decisions.

Author: Allen Dukes

Gold had an astonishing day yesterday when it made an unbelievable leap to a new record high of $1174 an ounce before settling at $1163 an ounce.

As you know, gold has been on the rise for some time now. In fact, the precious medal has increased in value an amazing 32% this year alone. Lately it seems as if any bad news concerning the United States economy has an extreme effect on the price of gold.

This is exactly what happened on Monday. The dollar index fell yesterday after two announcements that were made. Both announcements painted a gloomy outlook on the US economy.

A government report showed that the US economy grew slower than expected in the 3^rd quarter. Third quarter growth reached 2.8% which was significantly lower than what economist expected.

Another factor that caused the price of gold to increase was an announcement from Federal Reserve officials stating that they expect interest rates to stay low for some time now. Lower interest rates devalue the dollar ultimately having an effect on the price of gold.

The equation for gold prices is fairly simple. As the value of the United States dollar (the “Greenback”) decreases gold moves in the opposite direction. The greenback is measured against other currencies from around the world using the dollar index DYX. With a slowing US economy any news good or bad will have a dramatic effect on the price of gold. In simpler terms, as confidence in the US dollar decreases the price of gold increases.

Gold us currently up $4.50 per ounce from yesterday at $1168.80.

Visit Healthy Financial Habits daily for up-to-date news and information on gold prices and other commodities. Here you will find all the information you need in order to guide you while making investment decisions.  Check back every Monday morning  for weekly gold price predictions.

Author: John Zinsky

Last week proved to be an active week for gold. We saw the price of gold start off on Monday at $1131 an ounce on and eventually climb up to $1146.40 on Friday.  Within the week gold surpassed record highs numerous times and even sustained its momentum as the dollar index DYX increased.

Healthy Financial Habits accurately predicted that the price of gold would reach $1,150 last week. This week we believe that the outlook for gold may lack some luster.  With nearly a 3% increase in a single week combined with the dollar index on the rise, the market is surely headed for a correction.

We are predicting that the week of November 23^rd will start off with a decline in the price of gold. The dollar index, a measurement of United States currency, is headed in the upward direction. Generally, as the value of the dollar increases gold usually reacts by moving in the opposite direction.

The price of gold will become erratic and eventually level off towards the end the week closing at $1139 per ounce at a loss of $7.00 an ounce.

One unknown factor that will adversely affect the price of gold is the current holding of 200 metric tons of gold from the International Monetary Fund.  As you may recall, India purchased 200 of the 400 metric tons of gold from the IMF at the beginning of November. If another central bank buys a large portion of the remaining 200 metric tons from the IMF the price of gold will be headed for a sharp incline.  It is currently unknown what the IMF plans to do with the remaining supply.

Check back with Healthy Financial Habits every Monday morning for your weekly gold price predictions. Here you will find current news, information and investment strategies that will assist you in making financial decisions. It is important to remember that consulting with a quality financial advisor is always recommended prior to making personal financial decisions.

Author: Greg Jackson

On Friday gold closed for the first time at an astonishing $1146.40 an ounce on the Comex Division of the New York Mercantile Exchange, despite a higher dollar index. Fridays closing was an increase of $5 from the previous day close of $1141.40. This comes just two days after gold reached an all time high of $1151.20 an ounce before dropping back down to $1141.00 an ounce.

Today’s closing marks the 6^th consecutive session that gold had increased in value. As economic uncertainties continue to brew a greater demand for gold is to be expected.

The price of gold has been on the rise.  On average ,gold has increased in value 18.9% per year over the past 5 years. This year alone gold has increased 28.6%. If prices continue to increase we could see a 30% increase in gold this year.

What factors weigh in on the price of gold? Well there are many factors that dictate which direction the price of gold heads. For starters, gold is directly tied to the United States currency or the green back. In general the two have an inverse relationship. As the dollar decreases in value the price of gold generally tends to increase. The value of the green back is tracked minute by minute using the DYX Index.

There are many other factors such as news of gold shortages,  large purchases of gold, or other outside factors that influence the price of gold.  Like many other commodities this is a demonstration of the law of supply and demand. When there is a supply shortage (imaginary or actual) or expected shortage, gold becomes more valuable because there is a limited amount of it and many people have an interest in obtaining it.

Another factor that drives demand for gold (ultimately the price of gold) is the fear of inflation or perceived fear of the dollar decreasing in value. Many people convert their green back to gold when they fear that the dollar will lose a significant amount of buying power. Gold has never been valued at zero while many other currencies have.

It will be interesting to see how the remainder of this year plays out. We could very well see gold increase over 30% as it did in 2007 when it finished out at 30.9%.

Be sure to check back Monday morning for our weekly gold price predictions. Here we will tell you what we believe the weekly high will be and at what price gold will close at on Friday.

The staff at Healthy Financial Habits is committed to delivering accurate and fast news pertaining to commodities and other investments. Please check back frequently for news updates, advice and investment strategies that will help you to develop healthy financial habits. As always it is important to consult with a financial adviser before making any investment decisions.

Author: Greg Jackson

The price of an ounce of gold slowed down yesterday as the dollar index showed an increase in the value of the US dollar. The dollar index measures US currency against other currencies from around the world. The DXY closed at 75.19 on Thursday.

This increase in the dollar index comes after it was announced that jobless claims are showing signs of leveling off as new data showed no change from the previous week.  Two weeks ago we saw jobless claims at its lowest point since January. This information paints a brighter picture of the future of the greenback as confidence in the US economy grows stronger.

Although gold has hit a speed bump this week it has still made impressive gains. On Monday, I predicted that gold would reach a high of $1,150 an ounce by this Friday. This was accomplished yesterday as gold hit $1151.20 an ounce before declining to eventually settle at $1140.70. So far this week we have seen incredible gains in the price of gold. Overall gold has risen 9% this month alone and an incredible 30% since the beginning of 2009.

Early this morning we saw gold prices increase, then sharply drop. The current price of gold is  $1133.99 USD down $6.71 from the closing price.

The dollar index and gold have an inverse relationship. As the dollar index moves up the price of gold is usually driven down. Because of this inverse relationship we are able to get an idea of which direction gold will head.

So far this week we saw gold reach $1150 an ounce before dropping off. The staff at Healthy Financial Habits believes that gold will not make any huge gains for the remainder of this week. We are expecting gold prices to settle around $1139 an ounce at by Friday’s closing.

Please visit Healthy Financial Habits for up to date information on gold and other commodities. Here you will find news and other information that will assist you in making informed investment decisions. Be sure to check back every Monday morning for weekly gold price predictions.

Author: John Zinsky

Many unemployed Americans are turning to colleges and universities in order to gain a better position in today’s workforce.   But what do these unemployed people do when they see that the college education they seek will cost them nearly 6 figures?  Of course, they are applying at that prestigious state school with the best programs in the region… or are they?  Community colleges and 2 year schools have always had the reputation of offering an inexpensive, second rate education to second class citizens.  This is not the case anymore.

Community colleges still may have lower tuition than your average state university, but its green curriculum may be blowing universities out of the water.  Two-year schools specifically focus on programs where there is a current labor market demand.  This way, they can get the students through the program quickly in 2 years and have them walking into work right after graduation.  The future labor market consists of positions that are far and few currently.  These positions include bio-fuel production technicians, environmental engineers and eco-activists.  Community colleges are looking ahead and designing programs and degrees that cater to the green market and sustainability.    Because of this, community colleges are starting to partner with large corporations such as GE and IBM to fund and support sustainable degrees.  Many of the Fortune 500 companies are donating materials and electronics in an effort to build these eco-degrees.  These corporations will then hire within these programs, which in a sense, they helped to create themselves.

If you’re one of the many unemployed Americans seeking a higher education, you may want to rethink your choice of schools.  Community college degrees may be a wiser decision in the long run not only financially but sustainability as well.

Visit Healthy Financial Habits daily for up-to-date news.  Here you will find all the information you need in order to guide you while making investment decisions.  Check back every Monday morning for your current news report.

Author: John Zinsky

After Us Federal Chairman Ben Bernake announced yesterday that the feds were paying close attention to the change in currency, there was a momentary slight rise in the dollar. At the same time gold reached a new record high as it hit $1144.20 an ounce.  As confidence in the US dollar decreases, the appetite for gold increased causing the price of gold to increase.

With the federal government cutting interest rates to nearly 0%, the confidence in the dollar is steadily dropping. This year alone we have seen the dollar decline 7.4%. After Bernake’s pep talk yesterday, the dollar is up 0.8%.

Gold and the dollar usually have an inverse relationship, meaning that they move in opposite directions. As the value of the dollar decreases the price of gold begins to increase. This may not be evident from day to day but it always holds true over the course of a year.

Yesterday I predicted that gold would increase by $20 this week eventually ending around $1150 by Friday. The unexpected and rare commentary on the United States dollar by Ben Bernake caused a sudden spike in the price of gold. I believe the spike will level off as some investors cash in and we will still see a slow gradual climb to $1150.00 an ounce by Friday. So far this morning we saw gold decline sharply and is now climbing back up. The current price of one ounce of gold is $1135.40.

Many analysts believe that the price of gold will reach beyond $2,000 an ounce next year. This belief comes from the idea that in 1980 gold topped out at $825.50 an ounce before declining. If you were to adjust $825.50 to 2009 dollars this would be around $2150.00 an ounce.

Return to Healthy Financial Habits for up to date news on Gold and other Commodities. Here you will find current news and information that will assist you in making wise financial decisions. As always it is important to consult with a financial advisor before making any investment decisions.

Author: Allen Dukes

Last week we saw gold reach for the sky as it broke several records. The week ended with yet another all time record high when it finished at $1,116.70 an ounce. What directions will the price of gold head this week?

Last week was a great week for gold. Several factors such as India’s purchase of 200 metric tons of gold from the International Monetary Fund at the beginning of the month coupled a falling dollar has raised the interest of overseas central banks and individual investors.

As the value of the dollar falls it is expected that several overseas banks will continue to buy large quantities of gold. The dollar is measured against other currencies using the dollar index. As we see the dollar index fall, more interest is shifted towards the acquisition of gold.

With a strong opening this morning at $1131 an ounce, gold appears to be continuing last weeks upward trend. My prediction for the week of November 16^th is that gold will continue to remain strong and increase in value by perhaps as much as $20 an ounce. Given that the dollar has been on a sharp decline for the past 3 months and shows no sign of a turn around, I would say that this trend will continue this week. In addition many people foresee inflation coming and are looking for a hedge thereby causing a greater demand for gold.  As more individuals and central banks purchase gold this shortens the gold supply causing the price to increase.

While considering the purchase of gold it is important to remember that gold is not an actual investment per se. Gold is merely a hedge against inflation or a safe haven. Before making any decisions concerning your finances it is recommended that you consult a quality financial adviser.

Visit Healthy Financial Habits daily for up-to-date news and information on gold prices and other commodities. Here you will find all the information you need in order to guide you while making investment decisions.  Check back every Monday morning  for weekly gold price predictions.

Author: John Zinsky

This week we saw the price of light sweet crude oil approaching $80 a barrel.  This trend continued until the Department of Energy released their report on gasoline and oil inventories yesterday.

As the news spread that inventory levels were high, the price per barrel began to take a nose dive. Oil reached $80.41 a barrel on Tuesday before dropping to a one month low today low at $75.68.

There are many factors that have an influence on the price of oil.  With a slow economy comes a weakened demand for oil products. As the demand weakens, supply levels increase and ultimately drive down the price of crude oil.

On the flipside the dollar began to stabilize and is actually showing a slight upward trend as oil prices fall.  The dollar and crude oil prices have an inverse relationship: As the price of oil falls the value of the dollar usually moves in the opposite direction.

What direction will light sweet crude oil prices head to, as we approach the winter months? Well Merrill Lynch believes that the 2010 Clc1 price will reach $85 per barrel – up from their previous forecast of $75.  They believe that the economy is recovering faster than expected and should cause a greater demand for oil products next year.

Oil is currently trading at $76.49 a barrel.

Get your up to date commodity prices by visiting Healthy Financial Habits daily. Here you will find the latest news and information on commodities such as gold and oil.

Author: John Zinsky