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Monday, 19 October 2009The price of gold continues to move higher on world money markets, while thevalue of the dollar continues its downward trend. Gold has been trading above $1,050 an ounce, rising nearly 20% this year, while the dollar dropped more than 7% in value.
The sought-after precious metal
One estimate expects it to average $1140 an ounce next year. Just 10 years ago, it was trading at about $300 an ounce.
The trend is unlikely to change anytime soon. President Obama has increased marketable U.S. debt to a record in excess of $7 trillion as he borrows to revive economic growth.
Gold's steady gains also appear to be the result of a bigger-than-expected drop in U.S.consumer confidence. Confidence among U.S. consumers dropped more than forecast in early October, a sign Americans think U.S. recovery will be fragile.The recent world-wide recession is one of the biggest reasons for the rapid rise in gold prices. With world stock markets having tanked during the economic meltdown, some investors moved to gold to protect their investments. It also is a hedge against either inflation or deflation.
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Monday, 19 October 2009
VOA News
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