Each and every time that the market analysts think that the price of gold can go no higher, it does. Gold buying reached a new high upon the news that the Federal Reserve is taking a step back from controlling the flow of money of the country. (For more see www.goldsmart.co.nz) At the same time, rumors of United States debt being downgraded continue to scare investors.
For the past few years, the Federal Reserve has kept interest rates near 0 to counteract the massive losses that the banks took in the recent recession. The Feds were hoping that keeping the borrowing rate down would allow banks the room to begin lending again and kick starting the flow of money again.
However, banks were and continue to hold funds, even as the Obama administration and financial authorities declare the recession officially over.
Even as the Dow and the other indexes continued to rise on news of the stabilization of the housing market and increasingly positive statistics on employment and procurement, gold continued to rise as well, against historical norms. Even during certain sell points, the price of gold held above its 30 and 60 day averages.
With the current news hitting the airwaves and the Greek debt crisis still looming overhead, gold buyers are continuing to place their savings in the historically recession proof commodity, and this interest shows no signs, either technical or otherwise, of slowing down anytime soon.
If any of the sordid events above come to pass, even those who bought into gold at this late stage stand to make a tidy profit off of their investment.