Thursday, June 4, 2009

Today in Gold: Thursday, June 4

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 rises 2 pct on crude rally, inflation fears"
Author: James Pethokoukis

Main Points: Following the biggest drop in more than a month on Wednesday, the price of gold nearly made up all of the ground it lost by rising $16.70 to finish Thursday's session at $982.30 an ounce.

The jump was largely attributed to oil. Goldman Sachs raised its oil forecast from $65 to $85 a barrel for 2009. Goldman also labeled the recent oil rally as the first stage in economic recovery.

Analysis: Gold and oil typically maintain a ratio of around 14:1 -- it finished at 14.14 today.

Note that during the past two years, gold has historically dropped sharply after approaching or eclipsing the $1,000 threshold. It did so yesterday, and tomorrow could be a sign of what is to come.

No comments:

Post a Comment