Monday, March 23, 2009

Today in Gold: Monday, March 23

Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:

"Wall Street rally cramps demand for gold"
Author: Sara Lepro

Main Points: Following the Fed's decision to buy up bad mortgage debt, investors were willing to take on more risk today. The result is that gold, otherwise steady, dropped $3.70 to $952.50.

Analysis: This is a common theme. When investors get shaky, they turn to gold as a safe haven. When they get bold, they turn to higher risk/higher reward investments and move past gold.

"Does the gold price have further to rise?"
Author: MoneyhighStreet Staff

Main Points: Barclays Stockbrokers polled investors in early March for their appetite for investments and found that one third expected the price of gold to rise while another 20% expect gold to maintain its value. Of course, another third believes that the price of gold has hit its peak.

Analysis: On one hand, this means that more than 50% of investors believe it's a good time to buy gold. On the other, it shows just how uncertain investors are about the immediate future of the precious metal. We've reported several conflicting projections over the past few weeks, and it's becoming increasingly clear that no one is particularly sure what is going to happen.

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