Stock BlurbsStocks and Financial News
US Dollar weakens driving Gold over $1000
Gold prices rose over $1000 for the first time since February as the US Dollar weakened over fears of inflation and excess government stimulus spending. Inflation worries has forced investors to investments that are considered safe such as Gold.
When the value of the dollar, often considered the world’s reserve currency, is falling, investors often turn to gold as a relatively safe alternative place to put their money.
“When you have currencies weakening and there’s no currency of choice (among traders), you move to gold,” said Carlos Sanchez, an analyst with CPM Group in New York.
The market thinks inflation is coming and sometimes perception is reality. Some say Gold may finish the year at or above $1200 dollars an ounce.
According to Bloomberg.com “The SPDR Gold Trust, the biggest ETF backed by the metal, reached an all-time high of 1,134.03 metric tons on June 1. The fund, which held 1,077.63 tons as of Sept. 4, has overtaken Switzerland as the world’s sixth-largest gold holding. Bullion held in ETF Securities Ltd.’s exchange-traded products gained 6,640 ounces to a record 8 million ounces (248.8 tons) yesterday, its Web site showed.”