Gold Hits Record High and Slides as Dollar Recovers
September 30, 10 by Edahn Golan
(IDEX Online News) - The price of gold closed today at $1,307.40 an ounce on the futures markets, completing a major run, rising 29.7 percent in the past year, and breaking price records several times during the period. On Thursday, gold peaked at $1,315, resting after crossing a record $1,317.50.
Against fears of a weak U.S. economy and a weakening dollar, gold contracts became a popular choice for investors in the last few weeks, a depressing piece of news for jewelers in the West that fear that in such an economy, it will be tougher to sell gold jewelry, which will inevitably become more expensive.
In counties where gold jewelry is bought as an investment, such in India and the Arab Gulf, jewelers are expected to see somewhat slower sales, with large volume buying when the price eases.
After active trading in New York today (Thursday), the price of gold relaxed as the dollar strengthened and reports indicating an improvement in the U.S. economy. Despite this, gold is expected to maintain its high value in the near future.
