Gold prices climbed to a record high Wednesday, reaching as high as $964.70 an ounce, as the US dollar slips, and there is reason to believe gold could go even higher yet.
There have been predictions that the price of gold will reach $1000 in the next few months. If the US economy continues to slump and the US dollar continues to fall, we may see that happen.
The record gold prices are due mostly to the record low US greenback as the dollar continues to fall going below $1.51 per euro for the first time.
Federal Reserve chairman Ben Bernanke told Congress Wednesday that weak US economic growth may prompt the central bank to cut short-term interest rates further.
The Fed has already cut interest rates by 225 basis points since September, reducing its key short-term federal funds interest rate to 3.00 percent.
It can’t be good for the dollar when we have former Federal Reserve chairman Alan Greenspan Urging Gulf States to Abandon the Dollar.
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1 user responded in this post
I wonder how many people wish they bought gold back when it was $600 or $500 or even $400 years ago. I have been buying up some gold on a regular basis for quite some time.
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