Tuesday, June 23, 2009

Today in Gold: Tuesday, June 23

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:

"Commodity prices rebound on dollar weakness"
Author: Sara Lepro
Website: Google.com

Main Points: The US dollar weakened against the euro and British pound today. As a result, gold for August delivery gained $3.30 to finish at $924.30 an ounce. Particularly during the past few months, gold has behaved in inverse relation of the dollar.

Investors anxiously await word from the Fed after a two day meeting tomorrow.

"What the market may look for is to see if they are going to give any indication of how long they'll keep rates low," said James Steel of HSBC in New York. Low interest rates are good for borrowing, but tends to weaken the currency.

Analysis: As we've covered repeatedly, each day is a new story. Gold dropped yesterday as the dollar strengthened. Today, the dollar weakens and gold rises. The immediate future of the gold price is not known. What is known, however, is that gold is in near record ranges. If you have gold, there is no better time to sell.

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