Wednesday, March 11, 2009

Today in Gold: Wednesday, March 11

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 Futures Rebound in N.Y. on Dollar’s Decline; Silver Gains "
Author: Pham-Duy Nguyen

Main Points: Following a drop below $900 an ounce on Tuesday, gold futures for April delivery rebounded on Wednesday, rising $14.80 to $910.70.

Coincidentally (or not, depending on your theories), the dollar fell. Historically, it's been widely believed the two have an inverse relationship, although that has not held as of late.

Analysis: No doubt about it, gold is volatile right now, likely reflected the daily shift in perception of the economy. Things look rough, the value of gold rises. Investors begin to gain some confidence, and they shift to riskier investments.

Consumers could take the volatility as a time to sell their gold to Cash4Gold. There is little guarantee that gold will again eclipse the $1,000 mark, and while it's speculated that the economy will continue to decline (thus helping the price of gold), there is an awful lot of unknown at this point.

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