Tuesday, May 5, 2009

Today in Gold: Tuesday, May 5

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 demand weakens"
Author: Sara Lepro
Website: Google.com

Main Points: Although the price of gold rose as high as $916.70 an ounce today, it settled at $904.30, a modest $2.10 rise.

According to Tom Pawlicki, commodities analyst with MF Global Research, the initial rise was due to an expectation that the stock market would take a hit after yesterday's jump. When it was clear the effects would be minimal, gold dropped back around the session's starting point.

Analysis: Barring any major news, expect the price of gold to plateau for the time being. Of course, as reported yesterday, if the IMF goes through with its sale of 403 metric tons of gold, the price could drop sharply. Otherwise, the price of gold should rise with an improved economy, which should precede inflation.

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