Daily Precious Metal Update

June 19, 2009 - Precious metal spot prices fluctuate on a daily basis depending on supply and demand for gold, silver or platinum. Today we’re seeing precious metal spot prices heading in the downward direction, mostly based on a strengthening United States Dollar that is lowering the investment appeal for safe haven metals at the moment. Gold and silver in particular have been on a losing streak in the past two weeks as a direct result of a small rally with major stock indexes that occurred after the United States Government and Federal Reserve mentioned that the current economic recession could end before 2010. What many investors don’t understand is that governments worldwide are saying and doing anything they can in order to preserve confidence in their fiat currencies and investing markets, and they will certainly say or do anything in order to prevent an absolute economic collapse. The truth of the matter is that even if the recession ended tomorrow, we still have to worry about long-term inflation as a result of spiking interest rates that are bound to happen sooner or later. Fortunately, precious metal spot prices tend to increase significantly during high inflationary periods when interest rates are on the rise.

By around 2:30 PM Eastern Standard Time, precious metal spot prices are further extending their losses, yet several market analysts believe that a rebound is imminent in the short-term due to the overall troubles with the United States Dollar. Currently, gold is trading at $930.90 per ounce while silver is trading at $14.19 per ounce and platinum is trading at $1202 per ounce.

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Danny Burns

Senior Staff Writer - Precious-Metal.org