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:
"Goldman Sachs: Gold prices to stay above $900"
Author: Tom Stundza
Website: www.Purchasing.com
Main Points: After holding a $913 an ounce average during the first quarter, Goldman Sachs projects that gold will have a $930 an ounce average during the next two quarters and $950 in the final quarter.
"Should real interest rates move lower or buying by gold ETFs continue at its current torrid pace, however, the upside risk to prices would be significant," says a note from Goldman Sachs analysts to clients. Gold prices typically go up as a result of decreased real interest rates because it slows the rate of gold mine production.
Analysis: We continue to see more modest projections lately, particularly from the larger institutions like Goldman Sachs. As we investigated yesterday, though the weak economy helps gold on one hand, it also limits it because of the negative impact to the retail jewelry industry.
"Gold, other commodities up on renewed buying power"
Author: The Associated Press
Website: www.IHT.com
Main Points: Following a few days market drops, gold for April delivery rose a modest $4.20 to $942.20 today. Stocks also rose.
Gold took a minor hit recently as there was renewed optimism on Wall Street. However, that doesn't mean investors are ready to abandon gold.
"The general view is 'Yeah, stock markets are looking good now, at least temporarily, but I'm also concerned about the economy in general,'" said Carlos Sanchez of CPM Group. "So everyone is perhaps going a little bit into everything, some stocks, some gold, some cash."
Analysis: We have and will continue to see modest gains and losses for gold in the coming weeks, but given there is no magic pill for the economy you can expect the gold metal to retain its strength for the foreseeable future.
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