Wednesday, June 17, 2009

Today in Gold: Wednesday, June 17

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 reverse early losses, move higher"
Author: Sara Lepro

Main Points: Gold prices dropped early in today's session on the heels of a governmental report that indicated inflation was under control, as consumer prices rose less than expected in May.

However, the dollar weakened against the Euro and British Pound, driving gold up to a $3.80 gain, settling at $936 an ounce by the end of the session.

"The reality is prices are still going up and people are concerned about where those numbers are going to be a year from now," said Matt Zeman of LaSalle Futures. "People are still concerned about inflation, in spite of this number that came out today."

Analysis: It's a delicate balance for the government. Many believe there will be a necessity to raise interest rates, which is expected to weaken the dollar and drive inflation. If that happens, gold is likely to benefit. That said, there are no guarantees in the short term for the yellow metal.

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