What is the latest scoop on live gold prices? Gold price is now up to $1,617.30 per troy ounce, which is a major improvement from the spring and summer seasons. Nevertheless, the price did fall from its September high, which has some economists chatting. What is to explain this drop?
Both gold and silver price dropped because of a higher U.S. dollar this week. In addition to the dollar’s recovery, there was a great deal of trepidation over bank liquidity in the Eurozone. Ordinarily, such bad news pushes the price of gold up, except that in this case the suddenly stable U.S. dollar benefitted from the euro struggle. In fact, because U.S. investors are moving away from the Eurozone, it has actually put the U.S. (namely the Federal Reserve) in the perfect position to “save the day.”
The latest news shows that the government is engaging in dollar swaps with the European Central Bank, so as to ease the burden. What will all of this mean for live gold prices? The scenario is exceedingly short term. Eventually, something has got to give and it may well be the Eurozone since so many countries are struggling to climb out of debt. The U.S., while the big hero at the moment, is far from financially free. The country still has a trillion dollar deficit and a contentious political atmosphere.
Remember that when the economy shakes, gold becomes stable. Many other metals actually drop in price because of bad economic news—which directly affects production need. However, gold is a store of value commodity, and one that is unaffected by the stock market. Gold is only priced according to supply and demand and when there is depression, recession, panic or general uneasiness the price of gold increases greatly.
Now that you know the long-term stability of gold, it’s time to start investing in gold while the price is down. Remember, gold price fluctuates and if you can increase your supply while the dollar is gaining momentum, you will reap the benefits of when the price increases by the end of this year, or early next year.
Live gold prices suggest that at the moment, gold could easily increase to $2,000 PTO in the near future, due to economic conditions alone (and that’s not even considering the scarce supply of gold). Now is the time to talk to a coin dealer or bullion dealer who can help you find the “insurance” you need.