Gold Falls From Record Heights
October 8, 2009 by Stephen Kersey
Filed under Business
Gold finally fell below $1,050 per ounce after three consecutive days of gain, ending the record-breaking rally that saw the value of gold reach shocking levels as more and more investors turned to gold as a secure investment. While gold dropped, the value of the dollar slightly rose, hinting at renewed investor confidence in the currency.
The value of gold and the dollar traditionally fluctuate with each other, one rising as the other one falls because of competing investor desires. Comments from Fed chairman Ben Bernanke seemed to have given investors a bit of faith in the dollar as economic recovery continues to become a reality.
Gold has also risen in value so dramatically in the last several days because of inflation fears, as investors become concerned that rampant government spending could result in a depreciated dollar. According to several analysts, though, gold’s rise may still continue, with some estimates seeing values above $1,120 per ounce a possibility.
Gold (Image: Flickr)
