Daily Gold Eagle Update

April 22, 2009 – Gold US coins are benefiting from large equity weakness that is being witnessed today, and this trend is expected to continue as the ongoing tug-of-war between risk takers and safe haven investors progresses. Wise investors are currently seeking safe harbors as this global financial crisis continues to get worse by the day, and it appears that the most popular of these assets at the moment are the United States Dollar and gold US coins. The United States Dollar in particular is being seen as a short-term safety net because other currencies are experiencing heavy negative fluctuation, yet the long-term problems that may result with the dollar could be devastating because our government may continue overprinting in order to sustain positive sentiment that the recession may be ending, when in reality it is only getting worse. Gold US coins on the other hand are being seen as both a short-term and long-term safe haven tool that can be used for both preservation and profit taking reasons because they have a historical tendency to increase in value when problems occur in other financial markets.

By around 2 PM Eastern Standard Time, both bullion and certified rare American Eagles are seeing moderate gains for the day along with the spot price of gold that is currently trading at around $890.70 per ounce, moving up .84% for the trading day but still moving down 5.06% in the last 30 trading days. The inverse relation between precious metals and stock markets continues, so keep a close eye on the global indexes in order to predict short-term market movement.

Daily Updates Archive

Joshua Harris

Senior Staff Writer – Gold-Eagle.org