Monday, June 15, 2009

Today in Gold: Monday, June 15

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:

"Commodities sink as dollar regains strength"
Author: Sara Lepro

Main Points: After a three month tumble, the US dollar strengthened for the second straight session against foreign currencies. One major contributing factor today was a vote of confidence from Russia. Once showing uncertainty about the status of the dollar, Russia's finance minister, Alexei Kudrin, proclaimed that the US dollar would remain the world's chief reserve currency for many years.

As a result, gold for August delivery fell $13.20 to settle at $927.50 an ounce.

Analysis: As typically is the case, gold has an inverse relationship with the value of the dollar. Only two weeks ago, there was nothing stopping the price of gold. Now, the dollar looks strong, the economy is turning around, and there appears to be a lead weight on gold. In two days this week, gold has dropped $24.50.

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