May 5, 2009 – Precious metal spot prices on the New York Mercantile Exchange are showing that more American investors are buying gold bullion at the moment because of the latest inflationary fears that could wither away at the United States Dollar along with stocks, bonds and real estate. The metal seems to be holding firm above the $900 per ounce benchmark as the dollar continues to weaken versus other currencies and crude oil prices begin to increase as they usually do around summertime. In other news, stock markets saw some decent rallies yesterday, with the Standard & Poor’s 500 Index jumping 3.4%, officially erasing its 2009 losses, yet it appears like today the majority of equities are contracting due to negative economic sentiment. This negative economic sentiment has been one of the primary drivers that have pushed American investors into buying gold bullion as a hedge from losses in other markets.
By around 11:30 AM Eastern Standard Time, it appears like small amounts of investors are buying gold bullion at the moment, and this is pushing the spot price up to $905.60 per ounce, jumping up $2.40 for the day and also jumping up $11.80 in the last month. Short-term projections from Reuters are saying that spot prices will hover in the current area until momentum pushes the metal beyond $915 per ounce, which could signal a buying rally because several investors feel that $1200 per ounce could be seen by the summer. This being said, keep a close eye on anything that could create safe haven momentum.
