Thursday, May 21, 2009

Today in Gold: Thursday, May 21

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:

"U.S. Markets Wrap: Stocks, Dollar, Treasuries Fall; Gold Rises"
Author: Eric Martin and Margot Habiby

Main Points: Stocks weakened and the dollar fell amid concerns over US government credit worthiness today. Reports of jobless claims were worse than anticipated, and S&P talked about lowering the UK's AAA credit rating. The US's credit rating, then, is also a potential target, according to Bill Gross of Pacific Investment Management Co.

"The markets are beginning to anticipate the possibility," said Gross. "It’s certainly nothing that's going to happen overnight."

The result? Gold for June delivery was up $13.80 to $951.20 an ounce. The price was as high as $951.80 today, the highest price since March 23.

Analysis: Momentum has sustained and gold eclipses the elusive $950 threshold. Friday will be yet another test. Economic fears seem to ebb and flow on a daily basis on Wall Street. One day investor confidence is soaring, the next it appears we're headed towards a financial apocalypse. Stay tuned.

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