Daily Precious Metal Update

June 16, 2009 - Precious metal values are falling today along with the majority of mainstream stock indexes that are currently losing value based on significant uncertainty about the future of investing markets. It appears that precious metal values are currently under pressure from a stronger United States Dollar that has been on a consistent rally for about two weeks now. Today’s Dollar Index gains are a direct result of positive sentiment arising about the future of the fiat currency’s ability to remain as the world’s primary reserve currency. As you may already know, precious metal values tend to decrease when the dollar increases, and this is exactly the type of market movement that we are seeing today. In other news, crude oil has fallen to around $71 per barrel, further extending its losses from a near eight-month high based on speculation that the market rallied to quickly. As summer approaches, it’s time that we begin thinking about potential short-term market movement that may occur down the road, especially since the latest forecasts are saying that gold could hit $1200 per ounce while silver could hit $18 per ounce before the end of the summer. Although a bit speculative, these forecasts may become a reality if the dollar shows significant weakness in the coming months.

By around 4 PM Eastern Standard Time, precious metal values are continuing to head in the downward direction, with gold sitting at $927.70 per ounce, down $10.60 for the trading day while silver is sitting at $14.07 per ounce, down $.76 for the trading day and platinum is sitting at $1205 per ounce, down $45 for the trading day.

Daily Updates Archive

Danny Burns

Senior Staff Writer - Precious-Metal.org