During the first nine days of February 2010, the United States gold prices have varied from around $1,115 per ounce at the beginning of the month to $1,076.70 per ounce at the close of trading on February 9, 2010. This represents a short term decline of about $40 per ounce or 3%.
Notable Articles on Gold Bullion
BusinessWeek.com: “Gold May Drop to $1,025, Commerzbank Says: Technical Analysis”
According to Commerzbank AG, gold prices have been declining for the past four weeks, and these declines may extend to $1,025 per ounce. On February 5, gold reached a 3 month low of $1044.85 per ounce with a strengthening U.S. dollar and European budget deficits that have been expanding. These expanding deficits could slow Europe’s economic recovery.
See: http://www.businessweek.com/news/2010-02-09/gold-may-drop-to-1-025-commerzbank-says-technical-analysis.html
BusinessWeek.com: “Gold Declines to Three-Month Low in London as Dollar Rallies”
In London, England gold prices were at their lowest in three months as the U.S. Dollar gained momentum, which caused people to lose interest in gold as an alternate investment vehicle. The U.S. Dollar Index, which gauges the U.S. Dollar’s strength based on 6 other currencies, was at a six month high on February 5. In general, people do not feel safe with the euro. The reason is that Greece, Spain and Portugal have budget shortfalls that are out of control. In Spain, the recession has been ongoing since the second quarter of 2008, and real estate prices have been falling there.
Wall Street Journal: “Bullion Management Group Launches New Physical Gold Fund”
Bullion Management Group (BMG) launched a new fund this week called the BMG Gold Bullion Fund, which invests solely in solid gold bullion. The BMG Gold Bullion Fund is an open-end mutual trust available for redemption daily.
See: http://online.wsj.com/article/BT-CO-20100208-710872.html
Wall Street Journal: “New Metals ETF Planned”
ETF Securities USA asked the Securities and Exchange Commission (SEC) to allow it to lauch a new U.S. exchanged-traded fund supported by solid gold, platinum, silver and palladium. The price for precious metal could go up if ETF Securities USA is allowed to launch the above fund, which would go by the name ETFS Physical PM Basket Shares. According to ETF Securities USA, shares of the named fund are designed to be an inexpensive and easy way to invest in bullion.
See: http://online.wsj.com/article/SB10001424052748703630404575053921170488254.html
