Spot Gold Price Falls to 2 Week Low
Arizona gold nugget
Speculation that commodities demand will be curbed by regulations arising from the lawsuit against Goldman Sachs caused gold prices to fall this morning. This morning’s gold drop is a follow-up to the large decline seen in Friday’s trading.
Gold futures for June delivery fell $5.40, or 0.5 percent, to $1,131.50 an ounce at 8:20 a.m. on the Comex in New York. Prices earlier dropped to $1,124.30, the lowest level since April 6. Bullion for immediate delivery declined 0.6 percent to $1,131.
Gold futures declined 2 percent on April 16 as the legal action was announced. It was “one of the worst days we’ve suffered in our accounts in a very, very long while,” U.S. economist and trader Dennis Gartman said in his daily Gartman Letter today. “Our positions in gold, in non-U.S. dollars and in equities, blew up in our face in a matter of moments.”
Arizona gold nuggets
So I’m confused! Is the price of gold going UP or DOWN?! If gold can’t go through the roof during a ‘global fiat currency’ freakout, or credit crunch, debt bubble burst, whatever, then when? My sense is that the deflation demon will finally take out gold (‘goes up on an escalator and comes down in an elevator’!)
I also agree with whomever said gold was a good hedge against inflation NOT recession. The hysterical chatter about an inflation time bomb going off is exactly that… I’d say gold will hit $500 well before it hits $2K.
Herkimer Diamonds