September 14, 2009 - Gold bullion took a small hit in mid-morning trading on Monday, as the US Dollar slowed the freefall it suffered against other major currencies during most of last week. Gold bullion surpassed the $1000 mark last week for the first time since the beginning of 2009. Last week's jump was only the sixth time in history that gold went above these levels, and many experts at the Wall Street Journal and CNN Money are projecting that gold could top $1100 in the next quarter.
The price of gold bullion is affected by various factors, including consumer confidence in the current administration. A recent poll showed that 70% of Americans believe that the United States could suffer another financial meltdown. There was no word on whether or not the other 30% simply believed that the United States would not survive long enough to dig another hole as deep as the one America is in now. Many Americans believe that the banking sector is to blame for much of the current fiduciary situation, and with over 400 banks on the Fed's "troubled" list, it is hard to give them much of an argument. Increased spending on health care and alternative energy sources could increase the national debt and budget deficit, and this is causing many Anericans to shift out of paper assets and into more secure investments like precious metals.
Some gold bullion investors engaged in profit-taking after the opening of the market on Monday, briefly pulling back to levels below $1000 before marching back above that line. Gold for September delivery was trading at $1000.80 at 6pm EST on Monday. The price drop was called for last week by many market experts who think gold could surpass record highs before Santa Claus lands on his first chimney. Gold could reach new heights as consumer spending wanes due to lower household incomes and worries about job instability. For the most up-to-date news on gold bullion, visit kitco.com and goldprice.net.
