[/caption]The price for gold was rather weak on Monday morning. During the day the yellow metal turned out to be even softer with prices as low as $1,365 per ounce. Kitco.com reports that the weaker price for gold was not only due to the stronger dollar, but there was also some predominant selling visible.
The Federal Reserve Bank of New York placed $7.923 billion in Treasury bonds into public on Monday, its second operation as the central bank engages in a second round of quantitative easing to support lending and spending.
How the week will go as far as gold is concerned, remains to be seen. As Marketwatch.com reported a few days ago:
Gold’s feverish run has made a lot of people a lot of money, and though the rally has taken a breather in the last few days, there’s no shortage of flag-waving supporters who claim gold is on a march to $1,600, $1,800, $2,000 and beyond. After all, gold is still well below its 1980 peak, when it was worth around $2,300 an ounce in today’s dollars.
This was actually taken from an article that tried to "prove" that gold is a bad investment. But that is what you hear everyday: the media says this and quite the opposite the next day. Most of the reporters and writers don't really have a clue as to what is going on and try to sound very wise. Even if the gold price would fall further, lets say to $1,200 an ounce, it could not be considered a bad investment.
If you look at it short term, yes that might look bad, but investing is usually done with a longer time frame in mind.
The underlying factors for the appreciation of gold have not changed. Just because somebody is playing around with currencies does not remedy the overall situation.
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