Monday, June 22, 2009

Today in Gold: Monday, June 22

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:

"Dollar strength presses gold down toward $920"
Author: Frank Tang and Veronica Brown

Main Points: Gold for August delivery fell 1.3 percent to settle at $922 an ounce today. The price fell as low as $917.90 during the session, the lowest price since mid-may. The main driver behind the drop was the continuing strengthening of the US dollar.

An upcoming Federal Reserve meeting, however, could change the course. Other signs point to a potential course reversal in the near future.

"The correlation with the dollar is up sharply in recent weeks," said Dan Smithof Standard Chartered. "We think the dollar is going to weaken and provide support for gold."

Analysis: Will the dollar weaken? Will the upcoming Fed meeting benefit the gold price? Given the drop of the gold price today, it would seem that the majority of speculation would not be in favor of gold. However, as we've seen time and time again, speculation has minimal value. Tomorrow is a new day.

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