March 17, 2009 - Gold bullion prices are tumbling for the second day in a row after some unexpected positive data from the United States Commerce Department which increased confidence in the United States economy and its stock market. For example, the Standard & Poor’s 500 Index climbed about 2.4% yesterday which is the highest seen in three weeks, yet the overall MSCI World Index of stocks has dropped 17% for the year while gold bullion prices have increased 4.5%. It’s easy to notice a negative correlation with precious metals and equities at the moment, and this is why it is important to track the financial markets when making any investment in order to maximize the potential that you have. Several of the latest short-term projections are saying that gold could rebound due to demand for an alternative to currencies, which could push prices into the $950 per ounce area. Market analysts believe that at $950 per ounce the metal could experience some resistance, yet it could overcome as it has done several times in the past.
During the midday trading hours, gold bullion prices are falling a bit down to $915.80 per ounce, falling $7.30 for the day which equals out to a $25.80 fall for the month. This month seems to be a little slower than usual yet we can’t forget what happened on this exact same day last year. The all time record high of $1033 per ounce that gold achieved on March 17, 2008 is a historical benchmark that investors and market analysts believe could be surpassed by the end of the year. What do you think will happen?
