Monday, November 8, 2010

Gold Prices Soar Past $1,400 Today

Gold prices today moved above $1,400 an ounce, soaring past $1,402, a gain of $8.40 for spot gold.

Even though the U.S. dollar strengthened some today, that hasn't stopped the price of gold from rising, as it has performed that way contrary to the usual inverse relationship between the two, simply because the reasons for the support of rising gold prices overwhelm all other factors at times.

The implementation of another round of printing money will further weaken the U.S. dollar, but at the same time push investors toward investing in gold even more in order to protect against inflation and the loss in value of their capital.

The Federal Reserve's decision to throw another $600 billion into the economy in an attempt to boost the economy will backfire, as the former quantitative easing effort did.

But Ben Bernanke seemingly doesn't care, as there's little else he can do, and evidently doesn't believe in simply sitting still and allowing the market to cleanse and take care of itself.

Gold and gold mining companies, along with other commodities, will continue to rise as a result, and that is good for those investing in raw materials in the months ahead.

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