History Of Gold Prices
The Dollar lost over half a cent against the Euro, and Gold fought back to gain $9 – and gold has gained the respect of the market to hold its own.
Oil gained a moved slightly outside of its recent trading range. Hope this doesn’t mean that oil will rebound more – please.
In the news today……
$413B worth of Dollars – gained by foreign Central Banks last quarter – and 63% of that money was converted into Euros and Yen – a massive slap in the face to the US Dollar. This should keep the price of the Dollar low, and reduce that chance of a Dollar rally.
The History of Gold…..
Take a look at the following chart. It is the price of gold for the past several hundred years, but presented in a different way. The price has been adjusted for inflation – that’s the CPI that the government reports each month. Now we know from our past economyguy history lessons that the CPI actually understates the real inflation going on in the economy. So, these numbers are actually biased on the low side.
CPI Gold Price
What conclusion do you reach from this data? You see today’s price of gold at just above $1000/ ounce. It sort of looks like a fair price when presented in this fashion.
Here are the last numbers for today:
Dow Jones 30 Industrial – 9886 (up 21 points)
10 Year Treasury Bond – 3.38% (no change)
Euro – $1.4773
Gold – $1058 (up $9)
Oil – $73.27 (up $1.50)
Gasoline – $1.80 (up $0.03)
