June 19, 2009 – The gold bullion spot price is continuing in the downward direction today, yet maybe not for long as several market analysts are forecasting a rebound by next week as a direct result of short-term technical market strength that the metal has obtained after holding firm to its 100-day moving average near $925 per ounce. Earlier this month, the gold bullion spot price rose to $990 per ounce as the United States Dollar floundered based on inflationary pressure, and in the last two weeks we have seen the dollar rally while the spot price slowly but surely lost about $60 from its monthly high. The stronger dollar has without a doubt put pressure on gold in the short-term, but we could see this change very quickly if Brazil, Russia, India and China continue challenging the authority of the fiat currency. It’s very important that bullion investors keep a close eye on the Dollar Index along with the spot price because we could see a lot of inverse movement occurring within the next few weeks as investors begin making their seasonal diversification plans.
By around 12:45 PM Eastern Standard Time, the gold bullion spot price has retreated to $933.20 per ounce, falling .61% for the trading day yet still increasing 5.78% in the last 365 trading days. The latest short-term projections are saying that the metal could retest the $990 per ounce area yet again by the end of the month if the United States Dollar begins to contract significantly versus other major fiat currencies.
