Friday, May 8, 2009

Today in Gold: Friday, May 8

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 prices hold steady as Wall Street rallies"
Author: Sara Lepro

Main Points: Gold for June delivery held ground today, dropping 60 cents to finish the session at $914.90 an ounce. The price of gold was up 3 percent for the week.

Though the dollar did weaken, gold was held back by an otherwise optimistic day on Wall Street. The government's report that 10 banks will need to raise an additional $75 Billion was actually better than expected, and it was also revealed that fewer jobs were eliminated last month.

Analysis: More evidence of the sensitivity of the gold price. The dollar weakened, which is typically enough for the price of gold to go up. However, since economic news from the government wasn't as bad as expected, gold remained steady. Considering this apparent stabilization of the economy, you have to wonder if the price of gold is peaking. That, of course, depends partly on the role of potential inflation down the road.

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