October 6, 2009 – The gold bullion spot price posted larger than expected gains on Tuesday morning, followed by an afternoon trading session that repressed the gold price. Gold reached an all-time high of $1044 this morning, but some investors decided to sell their gold bullion, which decreased gold’s per ounce value to $1038.20 by 1:30pm EST. Economists were prepared for the gold price to surpass its previous record of $1033 before the end of 2009, but the overnight move from $1004 to $1044 is widely believed to be catalyzed by a British newspaper that published reports of secret international conferences.
These talks were supposedly aimed at eliminating the dollar from international commodity trade, meaning that other currencies would be used to price oil, gold and other internationally traded assets. Immediately after The Independent released today’s edition, gold prices started to soar. Market analysts at Reuters.com believe that the gold price could be reduced slightly over the following days as gold bullion investors liquidate their short-term investment, but long-term projections are strong. Analysts believe that investors could continue to add gold as a hedge against dollar-denominated portfolios. The international community must have some doubts that the US is recovering, or a long-term change like eliminating our dollar would surely not be discussed. Rather, international leaders apparently feel that the United States is due for an extended period of recession, and their lack of faith in US currency is carrying over to our own citizens. We could see an extended period of hyperinflation, so these gold spikes should come as no surprise for the next few years. The current gold spot price is $183 higher than last year’s same-day levels, and gold is up $21.60 today.
