Monday, May 11, 2009

Today in Gold: Monday, May 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 prices little changed as dollar rises"
Author: Sara Lepro

Main Points: On a day in which the dollar strengthened and stocks declined, the price of gold dropped a meager $1.40 to finish the day at $913.50 an ounce today.

Given that a report out of China also revealed that consumer prices fell 1.5 percent in April since the prior year, it is somewhat surprising that gold managed to stay about even.

"Given those reasons, I think gold held up reasonably well," said James Steel, an analyst with HSBC. "There's enough investment demand to keep it steady."

Analysis: This is a strong day for gold given the environment. Investors were selling off profits and the dollar strengthened. The strength of the dollar is typically inverse of the direction of gold.

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