Thursday, June 11, 2009

Today in Gold: Thursday, June 11

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, other commodities higher as dollar wanes"
Author: Sara Lepro

Main Points: Gold for August delivery nudged up $7.30 to settle at $962 an ounce, amid renewed inflation fears.

Inflation became a greater possibility as signs point to a continued economic turnaround. The government announced last week that jobless claims fell, and a new report indicates that, for the first time in three months, retail sales were up in May.

The price of gold is up, but it's struggled of late and today's price increase may be the exception rather than the rule for the immediate future.

"Although we have been bullish on most metals for some time now, we are getting somewhat more wary about prices at these levels," according to Edward Meir of MF Global. He feared that gold and other commodities were approaching "overbought territory."

Analysis: We heard this yesterday as well. It's as though investors jumped on the bandwagon when it seemed there was no limit in sight for gold, but quickly jumped off when the price hit a wall before $1,000 an ounce. We ran through this same cycle a few months back after gold briefly pierced $1,000, only to fall below $900 shortly thereafter.

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