Friday, May 15, 2009

Today in Gold: Friday, May 15

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:

"US gold ends higher on inflation worries"
Author: Felix Salmon

Main Points: Gold for June delivery nudged up $2.90 to finish the session and week at $931.30. Reports revealed that core inflation rose .3 percent during the month of April, more than had been expected, driving the increase. Gold is typically seen as a hedge investment against inflation.

Analysis: It's quite surprising that the price of gold only rose $2.90 considering how sensitive investors tend to be to the fear of inflation. That said, gold is impacted not only by inflation but several other factors, including the strength of the dollar, the stock market, and international markets (in particular, China).

It was a good week for gold, finishing up $16.60 since the end of last Friday. The range is still quite tight, and it will be interesting to see if the inflation fears can carry momentum to and beyond $950 an ounce next week.

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