Wednesday, April 22, 2009

Today in Gold: Wednesday, April 22

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:

"PRECIOUS METALS: Comex Gold Gains On Haven Buying, Lower Dlr"
Author: Matt Whittaker

Main Points: Gold for June delivery rose $9.80 today, closing at $892.50 an ounce. Safe haven buying and inflation were the main drivers, according to George Gero, vice president with RBC Capital Markets Global Futures.

"Everybody's a little concerned about the stress-test results," Gero said. "The financial fears have not gone away. The aversion to risk is still here."

Inflation concerns had practically disappeared when it was announced recently that retail prices had in fact dropped for the month of March, but reappeared today when the Federal Housing Finance Agency said that home prices rose a seasonally-adjusted 0.7% in February.

Analysis: The market movement on an hour to hour basis is really quite fascinating. Yesterday, we detailed how the price of gold initially rose in the wake of Bank of America's first quarter results, then fell following an optimistic statement from Tim Geithner. Now, this small piece of news about home prices drives prices back up.

In other words, don't pick a time to buy or sell gold. It will always be a rather safe investment. If you need the money, it will always be a good time to sell.

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