Gold Price Gains on Weak US Dollar

Gold gained a littler during the day, about 1.14 % to be exact. Gold traded higher during the day and then lost some of its ground. Comex gold last traded up at $14.40 at $1,339.50 an ounce for December contracts. The price for spot gold was last noted at $1,340.00, up $11.60.

The G 20 meeting during the weekend did not bring any real decisions. That basically means that the U.S. dollar will continue to be weak. While gold got about 4% cheaper last week, the price of gold still remains 21% up for the year.

The main driving factors for gold are uncertainties concerning the economy and inflation.

Gold as an Inflation Hedge

One of the main reasons why investors just love gold, is its hedge against inflation. With money invested in gold, this investment might not "make" a lot of money, but it is very likely that it at least keeps its buying power.