April 24, 2009 – The majority of the significant external economic factors are continuing to benefit gold in the short term, and several market analysts such as J.P. Morgan have raised their gold bullion forecast for 2009 because they feel that the metal could do much better than expected as a direct result of masses of wise investors increasing their holdings in order to protect their long-term spending power. Everything from the negative economic sentiment, to the increased physical possession jewelry demand in India and Dubai along with the ever-increasing Chinese foreign exchange reserves is pushing spot prices and gold bullion forecasts significantly higher. Safe haven investment demand seems to be very prominent in the United States in particular because the dollar has seen some rather uncomfortable forecasts that come as no surprise after trillions of dollars in bank bailout and stimulus packages. Wise investors are starting to stray away from failing stocks and bonds and into precious metals that could thrive during this financial crisis.
By around 11:20 AM Eastern Standard Time, the daily market spot price of bullion is continuing to strengthen, and the metal is trading at around $910.60 per ounce, moving up $6.80 for the day yet still down $23.20 in the last month. In the beginning of the year, gold bullion forecasts said that the metal could outperform the majority of financial markets, and up to this point in 2009 we have seen exactly that, with bullion surpassing gains seen in the majority of global stock indexes.
