5 Gold Insights
July 01, 2008Spot price of gold eclipsed $935 in trading Monday, its first time above the mark since May 22, as another fresh round of record oil prices exacerbated existing market-wide turmoil.
In light of the Federal Reserve's decision to hold interest rates at 2.0% - its first rate freeze since September 2007 - many thought the dollar would rebound, and in turn, sweep the legs out from under gold.
But the opposite proved true and gold rallied to its highest price in more than a month.
As Money Morning contributing editor Martin Hutchinson recently pointed out, gold remains strong because the leading central banks around the world aren't curbing inflation the same way, if they even are at all.