June 26, 2009 – Gold bullion pricing is headed upwards today as many new investors are entering the market and existing investors are purchasing more bars and coins in order to potentially hedge themselves from the short-term and long-term problems that could occur with the United States economy and dollar-backed assets. Historically, gold bullion pricing increases when the United States Dollar decreases, and that is exactly the type of market movement that we are seeing today, with the precious metal strengthening while the fiat currency weakens. In other news, first-time claims for jobless benefits in the US have risen to 627,000 Americans, up an unexpected 15,000 according to recent data by the Labor Department. This puts total unemployment to near 10% nationwide, a dangerous level that reminds many investors and market analysts about the beginning of the Great Depression. Fortunately, gold has proven its ability to thrive during dangerous economic times, and during the last high-inflationary, rising interest rate period of the 1970’s, the metal skyrocketed more than 850% while stocks floundered amidst one of the worst recessionary cycles the United States had ever seen up to that point.
By around 4:15 PM Eastern Standard Time, gold bullion pricing has taken a step in the upward direction as demand for the metal is slowly but surely increasing amidst these troubling economic times, thus pushing the spot price up to $939 per ounce, an increase of $6.90 for the trading day and also an increase of $53.70 in the last 365 trading days.
