Today gold gained more than a one percent increase. This is the highest that it has been in almost seven weeks. The price of spot gold rose right along with it, hitting the goal of the largest one day gain for the last three months. Not only did gold rise, but commodities, the stock market, and the euro gained points also.These gains followed after the federal government proclaimed their intent to preserve crucial United States interest rates the previous day. The plan from federal policy makers is to maintain an almost zero interest rate until the year of 2014. The chairmen of the federal policy maker's claimed that more economic stimulus plans will follow. This is good information for those who invest in gold. Many who thought that if United States interest rates climbed higher it would impact the opportunity cost of possessing no-interest bullion.
Hopefully, if this continues gold will keep on rising to even higher prices. Gold investors should bask in the good news, but still be aware of other factors. An analyst at Commerzbank said to keep a watchful eye on the prices of gold because there is a chance that there is a possibility that it could be susceptible to profit taking since its prices have gained ten percent.
It is the opinion of Jeff Clark from Casey Research that given the expansive alteration of gold that began in September of 2011 that it will probably take gold until May to reach a new prominent high in price. That being said, he still believes gold is the safer bet than silver. Although silver has seen its fair share of great gains, it is a highly volatile market and can drop just as quickly as it gained.
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