It has been an ugly week for gold prices as we watched the precious metal drop off since Monday. Today, the price of gold is up as the dollar index is showing signs of falling off. We are also seeing investors buying back recently sold gold positions.
Yesterday, we heard the United States Federal Reserve Chairman Ben Bernanke give a speech which indicated that US interest rates will remain low in order to ensure at full economic recovery. When interest rates remain low, this makes money easier for everyone to obtain and ultimately causes the dollar to lose value. The inverse is true when it comes to higher interest rates.
With interest rates remaining low, the value of the dollar may be rescued by another possible long term rating downgrade of Greece. Standard and Poor announced yesterday that Greece’s score may be downgraded again, this time a notch or two.
The dollar is currently down .10 to 80.75 while gold remains above the $1,100 mark at $1,105.97 per ounce – up $9.57 from yesterday
What do you plan to do with your tax return this year? Healthy Financial Habits wants to know. We have created a poll located at the bottom right of this page. Here you are able to vote to let us know how you are going to spend your money and also view the poll results.
Author: Abdullah Patel