Daily Gold Eagle Update

July 16, 2009 – Gold Eagle value is tumbling today side-by-side with the United States Dollar and crude oil prices as economic instability continues based on mixed data showing both the potential of an economic recovery and a deepening financial crisis down the road. Still, the demand for gold Eagle coins is holding on strong despite the spot price of gold falling to $935.10 per ounce, decreasing $4.40 for the trading day. Short-term market projections are forecasting a rebound in gold as the latest economic data continues to drive wise investors away from the dangers that are plaguing dollar backed assets.

In the past few days we have seen gold Eagle value rebounding as new inflationary data weakened the demand for dollar-backed assets, yet several corporations have just recently reported higher-than-expected earnings, thus increasing risk-taking demand in the short-term. Despite this minor market optimism, the fundamentals of our economy are still looking very unstable as unemployment is growing at a dangerous rate every single week, currently approaching 10% nationwide. According to several market analysts, a 10% nationwide unemployment rate usually means the beginning of a depressionary cycle, thus it is very important that the United States Government begins taking preventative measures as of now in order to avoid the large-scale loss of confidence that could occur if American investors found out that this recession evolved into a full-blown depression. Fortunately, if instability continues with our economy, gold Eagle value has proven its ability to thrive while inflation and deflation tear apart at dollar-backed assets.

Daily Updates Archive

Joshua Harris

Senior Staff Writer - Gold-Eagle.org