Gold Prices Went Further up on Weak Dollar

As reported by the street, spot prices for Gold went further up on Wednesday while the U.S. dollar showed weakness. If the dollar further softens, Gold tends to go up more.

As kitco.com states it:

"Comex gold prices on Wednesday ended modestly higher and hit another new all-time record high of $1,351.00 an ounce in December futures."

The price of Gold is tied to the value of the U.S dollar. The more investors lose confidence in the dollar, the more they tend to shift investments to gold.

James DiGeorgia, the publisher of the 'Gold and Energy Advisor' said in a note on Wednesday: "The value of the dollar, of course, is tied to full faith and credit of the U.S. government."

In an article titled "Gold Continues to Climb. Here's What to Expect and Why", DiGeorgia writes also on WSednesday: "Gold’s run up in price is an expression of the danger this country’s currency and economy faces and the danger is going ignored. Extremely low interest rates here in the United States combined with monetary and quantitative easing around the world is setting the stage for devastating currency and monetary crisis."

One way how to profit from rising Gold prices is to buy gold coins. You can get started with a very low investment and can enjoy good liquidity with for example with 1 oz Gold Eagles or 1/10 oz Gold Eagles.

Citigroup Sees Gold At $1450 In Next Three Months

Citigroup Global Markets wrote in a research note on Wednesday, as reported by kitco.com, that "despite the recent sharp rally in prices and stretched net long positioning in futures, gold could rise even further given the worries about fiat currencies and the lack of opportunity cost". "We expect the prices to rally further short term, but we have less conviction for sharper moves one year from now. As the global recovery gains traction and policy actions start being unwound, gold prices will look vulnerable," they further expressed their evaluation.



In New York the spot gold prices were rising by $8, or 0.6%, to $1,348.60 an ounce Wednesday afternoon.

Some are saying that the gold price might hit $4,000 an ounce in the near future. Figures like that seem rather unrealistic for most market researchers. But the same was said about gold prices above $1,000 an ounce, when it was trading at about $400.