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:
"Gold rises first day in three as dollar weakens"
Author: Moming Zhou
Website: MarketWatch.com
Main Points: The gold price increased today for the first time in three on Wall Street, climbing $7.10 to $922.60 an ounce. Not coincidentally, the dollar had a rough day.
"Gold is supported by weakness in the dollar today and expected dollar weakness in the coming months as the Federal Reserve's balance sheet deteriorates further and U.S. budget deficits and the national debt rise very significantly," said Mark O'Byrne, executive director at Gold and Silver Investments.
Gold's modest rise was held back by a strong day for riskier stocks. Investors with low confidence in the market will buy up gold; when their confidence rises, they'll abandon it for riskier plays.
Although gold rose 4.3% in the first quarter of 2009, it is also down 2.1% for the month of March -- the first drop in five months. The price of gold is now down approximately $80 since spiking over $1,000 an ounce on February 20.
Analysis: The fact that gold did go up on a day that riskier stocks did well shows that, while investor confidence is rising we're far from being out of the economic storm. Keep one foot in the golden door while dabbling in some higher risk opportunities.
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