Buy Gold Info

Gold Prices Hit $1500 an Ounce

The price of gold hit $1500 an ounce for the first time ever today as gold futures for June delivery reached $1500.50 an ounce. This intraday high was briefly reached before resettling to $1495 an ounce. The sudden Gold Spike comes on news from Standard & Poor’s report that the U.S outlook for long-term debt has been reduced from stable to negative. In addition uncertainty regarding the strength of the dollar has driven investors to look for an alternative. Their concerns regarding US debt, and the deficits has boosted demands of precious metals as an alternative to holding the dollar.

The price of gold has kicked up words continually for the last several months. Lim Chae Myung of Hyundai Futures recently said “The bullish trend becomes pronounced as more and more people get out of the dollar to buy hard assets.” Gold futures have increased approximately 31% over the last year. Some analysts are now expecting gold prices may reach $1600 an ounce by the end of 2011 or sooner.

Today immediately delivery of gold increased by up to 0.3 percent to reach an all-time high of $1,499.32 before pulling back. Carlos Sanchez of CPM Group said, “prices could go as high as $1,550 in the next couple weeks as investors focus on political gridlock in Washington.”

The deadline for reaching an agreement on whether or not to raise the debt ceiling in the US is to in May. Depending on the news coming out of Washington DC the debt ceiling events will most likely creates further activity.
APMEX Gold and Silver

Gold at $1500 – Will it Happen Soon?

Gold prices of$1500 an ounce moved closer to reality today as prices rose almost half a percent on early trading. This came as a response from Standard & Poor’s negative outlook on the US economy. This news fueled a sharp rally in gold futures. With April contracts reaching a record of $1,496.40 per troy ounce.

The Standard & Poor’s report revised its outlook on the US economy today, from stable to negative. This is in large part due to growing government budget deficits and debt. Nikola G. Swann a credit analyst recently said, “We believe there is a material risk that U.S. policymakers might not reach an agreement on how to address medium- and long-term budgetary challenges by 2013.”

Gold is traditionally sought after as an alternative currency in times of political uncertainty, and rising inflation. Gold investors in the Euro zone are also moving to precious metals in response to fears that Greece will default on their debt payment promises.

Meanwhile, worries in Asia due to larger than anticipated inflation data from China is creating record gold prices there.  Commerzbank analysts have reported that, “Uncertainty among market players should persist and gold should remain in high demand as a safe haven.”

With the latest news from Standard & Poor’s revised outlook about the US economy, the report regarding China’s inflation worries, and news of Greek default from the Euro zone, it looks like gold could reach $1500 an ounce quicker than anticipated.

 

Gold Prices Climbed Today

Gold prices climbed again today almost hitting a record intra-day high of $1,478 an ounce. As the precious metal inched closer to $1500 an ounce many people are concerned on the news from the US government that consumer prices increased last month due in large part to higher food and gasoline costs. This marks the third straight day of higher prices for gold, silver, and other precious metals. Investors often purchased gold as they had against inflation and a weakening dollar. Spencer Patton, founder and chief investment officer for hedge fund Steel Vine Investments LLC. recently said, investors are “getting increasingly concerned about inflation.” If gold does reach its intra-day high of $1,478 an ounce soon you may see more technical traders getting back into the gold market. When that happens it will definitely fuel the push toward $1500 an ounce gold. Oil today topped $110 a barrel for a short time and silver prices reached a 31 year high.

Gold Prices Increase Today

Gold prices increased Thursday on news from the US government’s Labor Department report stating that there is a large increase in first-time applications of people applying for unemployment benefits. The US government also reported higher wholesale prices with a 5.7% rise in gas costs.

Jobless claims last week rose to 412,000 up more than 27,000. The lack of hiring and global inflation is creating a sense of unease and leading many investors to precious metals.

Many believe the slowly improving jobs market, the crisis in Japan, middle east conflict, and problems with Europe’s financial market is contributing to the surge in gold prices. Gold buying seemed to be on investors minds over stocks on the latest job info and mixed earnings reports in the US.

Silver prices also jumped more than one dollar today and are currently hovering around $41.69 an ounce and investors are eyeing the $42 level next. If the rising gold price trend continues the next target for gold is $1500 an ounce.

 

Gold Prices Up Today

Gold and silver prices recovered today and bounced back above $1460 an ounce. Investors took advantage of the recent sell off during the last two sessions which helped add to the momentum. Today gold climbed as high as $1,463.70.

Earlier this week gold prices had fallen 1.3% due to a commodities sell off. Will Rhind head of U.S. operations of ETF Securities said, “Whenever we see a little sell-off in the gold market, what’s historically followed is some physical buying, which has propped up the price.”

In preparation for President Obama’s budget speech the U.S. dollar index was slightly lower today. Gold prices will likely follow Friday’s inflation readings out of U.S. and China to find direction.

Peter Schiff of Euro Pacific recently asked “What’s going to stop this gold bull market?” He believes that if the rate of inflation increases quicker than interest rates, “it won’t really matter to gold . . . gold will keep rising.”

Gold investors continue to be concerned with rising government deficits and their inability to tighten monetary policy. Philip Klapwijk of GFMS said this about government monetary policy, “Investors continue to be concerned about the outlook for inflation, with governments in general showing little appetite to tighten monetary policy significantly.”