Daily Gold Eagle Update

June 8, 2009 – Gold Eagle investment demand is falling today as the United States Dollar continues to strengthen, and it appears that the fiat currency is experiencing a strong rally at the moment. The inverse correlation between gold and the dollar is very strong at the moment, and in the past few weeks we have seen both safe haven assets heading in opposite directions as investor sentiment quickly shifted from optimistic to pessimistic and vice versa. Short-term market projections are saying that the dollar does not hold the strength to sustain its current rally, thus we may see gold Eagle investment demand increase by the end of the week if the dollar begins to show signs of floundering. A weakening fiat currency should come as no surprise to investors, especially since our government and Federal Reserve have pumped excessive amounts of dollars into our economy in order to prevent a collapse, yet they may only be prolonging the real problems that we could face either way. Fortunately, safe haven diversifications such as a gold Eagle investment have protected investors from similar problems in the past.

By around 2:45 PM Eastern Standard Time, the majority of gold Eagles are losing value while the spot price falls to the lowest in at least a week in New York and London, currently trading at around $949.90 per ounce, decreasing .49% for the trading day yet still increasing 5.29% in the last 365 trading days. The metal is already up 8% this year, so keep a close eye on the market in the event that further increases continue.

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Joshua Harris

Senior Staff Writer - Gold-Eagle.org