Wednesday, May 13, 2009

Today in Gold: Wednesday, May 13

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 up slightly despite strength in dollar"
Author: Sara Lepro

Main Points: Reports of weak retail sales helped strengthen the dollar, driving investors to sell off stocks. Surprisingly, this did not correspond with a drop in the gold price, which instead rose $2 to $925.90 an ounce.

Analysis: Gold typically moves in the inverse direction of the dollar, so this was a sign of some strength as gold is concerned. Gold did drop early in the day but rallied for the slight gain.

Gold has plateaued, but whether that means a decline is to follow is unknown. Some reports tell of an improving economy while others claim we have yet to see the worst of the recession. An improved economy would seem to benefit the dollar, assuming inflation would follow, although that does not appear to be a foregone conclusion among investors who have yet to hitch themselves to the precious metal.

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