Dollar Rebounds, Gold Falters
June 5, 2009 by Mark Ellis
Filed under Business
Depending on where your investments lie, you may or may not be upset by the news: although gold futures have dropped 2 percent today, lower-than-expected job losses have propelled the dollar upwards. Traditionally, the value of gold increases whenever the dollar loses value as investors look for a safer place to invest their money, but this development shows that the opposite holds true as well.
Image: Flickr
According to a recent report by the Labor Department, applications for unemployment insurance have finally begun to slow down, showing their first decline in numbers in a long while. Analysts seem to agree that employers are cutting jobs much faster than what the economy needs to recover, but an increase in the value of the dollar should stimulate hiring.
This news, along with other recent developments, seem to show that the economy may be turning around. Still, the unemployment rate remains at staggeringly high levels, signaling that we are far from back to normal.
