January 27, 2009 – Gold spot prices came down a bit today due to some overnight and early morning selling as the usual round of short-term investors make their quick profit and exit the market so they may re-enter when prices drop again as a result of the higher supply and slightly lower demand. In early morning trading we saw the gold spot prices come up a bit but they started to fall shortly afterwards side-by-side with the United States Dollar. The drops in price are not expected to last long as the recession is expected to worsen in the coming weeks and months and yesterday alone 50,000 US employees were laid off with many more on the way. This is definitely not a good time for most people right now, which is why everybody is eagerly awaiting President Barack Obama’s $825 billion stimulus plan that is supposed to strengthen the foundation of the United States economy along with creating several million jobs. All we can really do is hope that the plan is successful because if it is not, things will continue to get even worse and we can experience an extremely high inflationary period, which could in turn raise the prices of precious metals.
Right now we are seeing gold spot prices at around $901.30 per ounce, down one dollar for the day but still up $32.60 for the last 30 trading days. Projections for bullion continue looking bullish and it’s only obvious that people feel this way especially with a history of precious metals thriving during times of financial crisis. Invest well and have a beautiful day.
