Daily Precious Metal Update

June 17, 2009 - Precious metal pricing is climbing slowly but surely today as falling dollar values is creating short-term safe haven demand on the New York Mercantile Exchange. The United States Dollar is currently the primary driver for precious metal pricing, because historically, they trade inversely to each other. Today the Dollar Index has fallen nearly 1%, thus creating significant buying momentum with safe haven precious metals that is being caused by long-term inflationary expectations, which could end up much worse than expected. The United States Government has mentioned that citizens should not lose confidence in the dollar, and that the economy is well on its way to recovery, yet maybe they didn’t look at the near 10% nationwide unemployment rate, completely unstable stock market and worst of all, the 3% increase in core inflation that has occurred in the last 12 months. Several market analysts believe that we will have to face a high-inflationary period before exiting our current financial crisis, and if you were fortunate enough to remember what happened during the last high-inflationary period of the 1970’s, you’d know that gold in particular increased in value more than 800% as rising prices and spiking interest rates tore apart at our economy.

By around 4:15 PM Eastern Standard Time, precious metal pricing has taken a turn for the better, and it appears that all metals are seeing moderate gains for the trading day despite the recent downturns. Currently, gold is sitting at $934.70 per ounce, while silver is sitting at $14.18 per ounce and platinum is sitting at $1217 per ounce.

Daily Updates Archive

Danny Burns

Senior Staff Writer - Precious-Metal.org