July 16, 2009 - Precious metal funds are headed in their own directions as gold takes a step backwards while silver remains flat and platinum extends its gains for the trading day. Safe haven demand is sitting in the back seat today as many American investors are flocking back into the stock market after several corporations posted higher-than-expected earnings, thus halting flows into precious metal funds in the short-term.
Gold Spot Price = $936.90 per ounce, decreasing $2.80
Silver Spot Price = $13.25 per ounce, remaining flat
Platinum Spot Price = $1162 per ounce, increasing $5
The United States Dollar Index is tumbling today as all eyes are currently on stock indexes. According to several market analysts, instability with investing markets is likely to continue in the short-term as the tug-of-war between optimistic and pessimistic investors progresses. Since the beginning of the year, rapid shifts in investor sentiment have caused significant fluctuation with everything from the dollar to stocks and precious metal funds.
In other news, the United States economy continues to contract despite government comments saying that an economic recovery has begun. Our latest Producer Price Index and Consumer Price Index shows that inflation is growing at a rapid pace, with other data shows that unemployment is very close to the 10% nationwide mark. While all of this negativity is occurring in the United States, the Chinese economy has expanded at a pace of 7.9% in the second quarter of 2009. Keep a close eye on precious metal funds, because this financial roller coaster is not over just yet.
Senior Staff Writer - Precious-Metal.org