Friday, June 12, 2009

Today in Gold: Friday, June 12

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:

"US gold ends 2 pct lower,under $940 on dollar rise"
Author: James Pethokoukis

Main Points: Gold for August delivery plummeted a startling $21.30 to settle at $940.70 an ounce today. Gold fell as low as $936.20 (the weakest price since May 20) an ounce during the session, in reaction to the sharp rise of the dollar. The dollar had previously been weakened against the Euro but rallied today.

Analysis: Gold showed a small glimmer of hope yesterday, rising $7.30, but that flame was extinguished awfully quickly. It was the second drop of at least $10 this week (gold also fell $10.10 on Monday) and the fourth such drop this month. In fact, there have been three drops of $18.80 or higher (down $19.70 an ounce on June 5 and $18.80 on June 3). This is in stark contrast to a nearly flawless month of May when gold seemed destined to break $1,000 an ounce. The price dropped only four times during May and rose a total of $90.60 from May 4 to 29.

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