January 15, 2009 – Buying gold bullion right now may be a wise idea as gold falls for the third straight day due to a strengthening United States Dollar but near-term projections are saying that this should flip due to a variety of problems and triggers that could spike prices very soon. Investors who have been buying gold bullion for a while know that the market usually takes a few steps forward and a few steps back depending on fluctuation in the Dollar and other major commodities. Even though the United States Dollar is gaining value right now, today’s retail sales data could put things in reverse due to further safe haven buying of gold bullion as a result of investors forecasting worse times to come.
The gold spot price is trading around $812 per ounce, a 1% loss for the day and a $24.90 or 2.98% loss in the last 30 days. Projections are saying that this won’t last long and that the metal should rebound once again, maybe even today as investors pick up some more gold to battle inflation and other economic problems. Projections continue to look positive for bullion and even those who are bearish about the market say that the spot price will hit around $950 per ounce by around midyear. I personally think that the more speculative projections such as $1000-$2000 will become a reality because there’s just no way that an economy so damaged can get back up quickly. I guess all we can do is wait and see. Until then, have a great day!
