Gold Prices Expected to Rise Amid Dollar Weakness and Increased Investor Demand

Strategic Insights -

Gold prices are expected to open trading in New York around $5 an ounce higher on Tuesday, June 2, 2009, as the dollar continues to falter and investor demand for the precious metal remains strong. The spot gold price was trading at $983.55, up $8.45 from the previous day, with the euro also rising to $1.4258. In contrast, crude oil prices fell by 39 cents to $68.19 a barrel in overnight activity.

Key Takeaways:

  • Gold prices are expected to rise by $5 an ounce on Tuesday, driven by a weaker dollar and increased investor demand.
  • Spot gold prices were trading at $983.55, up $8.45 from the previous day, with the euro also rising to $1.4258.
  • Comex gold warehouse stocks were down 4,212 ounces at 8,318,172 ounces on Monday, while silver stocks were down 271,411 ounces at 119,817,219 ounces.
  • July silver prices gained 12.5 cents to settle at $15.735 an ounce on Monday.
  • Gold futures ended near steady on Monday, with August gold falling by 30 cents to settle at $980 an ounce.
  • Investor demand for gold remains strong, despite profit-taking pressure in the market.

Statistics:

  • Spot gold price: $983.55 (June 2, 2009)
  • Increase in spot gold price: $8.45 (June 2, 2009)
  • Euro price: $1.4258 (June 2, 2009)
  • Crude oil price: $68.19 a barrel (June 2, 2009)
  • Decline in crude oil price: 39 cents (June 2, 2009)
  • Comex gold warehouse stocks: 8,318,172 ounces (June 2, 2009)
  • Decline in Comex gold warehouse stocks: 4,212 ounces (June 2, 2009)
  • July silver price: $15.735 an ounce (June 2, 2009)
  • Increase in July silver price: 12.5 cents (June 2, 2009)

Sources:

  • Dow Jones Commodities News via Comtex
  • Comtex
  • New York Mercantile Exchange (Comex)
  • Dow Jones Newswires - Allen Sykora