subject: Will 2010 See Rising Gold Prices? [print this page] Coming to the year 2010, the global economy would soon be aired with good news high interest rates, and that they shall continue in the run, but then, one is not supposed to expect some wavering of gold price in 2010. With respect to many evaluations, gold prices are most likely to retain its security, since investors at large have been working over this yellow metal in terms of a shield against inflation. Moreover, the assumption for the year 2010 for gold price has been around $900, and that is almost a 13% rise as well.
It is mostly seen that Dollar and gold prices oppose each other, Euro, and gold move together. So in future, if Euro goes down, then gold will also suffer. Correlation of +0.52 is seen between Euro and gold in years 2008, and 2009, and a rise in this correlation is expected in 2010.
But, the general trend in the gold market is not so different. For a major change, interest rates across the globe will rise, which is not likely to happen in 2010. Gold is said to be a substitute for the leading currencies of the world by many experts. Gold market went really well in the year 2009. But, this dynamic price increase will not continue further. With the ongoing rise in the US dollar, gold prices will decrease.
Determination of gold value includes many factors in which inflation is the main cause. There were big financial crisis in 2009 and 2008, and that is the reason that people now do not trust in paper money. Most of the participants want a trustful substitute of the paper money, which is gold, and it is surely taking the lead on the leading currencies of the world.
Some expectations are inclusive of high inflation that inculcates US$ decrease. Moreover, the expectation also includes the increasing development in China that has Yuan on the rise.
United States, UK, UAE, Saudi Arabia, and other Arabic banks had been confronting some dire circumstances, since they had been under the stress of loan that they had attained from the US economy, but had failed to pay it back. Moreover, the US has been expecting a rapid recovery from the swamp of decline, and there has been an indication of war in the Middle East.
As many leading banks are under heavy pressure with US heavy Debts, they might crash in near future. US will need a very strong recovery. War in Middle East is expected and the oil prices will rise with the recovery, and rise of world economy, and US economy.
The best time to invest in gold was 2000-2002, when gold prices were low. Now, it is not a good idea to invest in gold, because it is under a lot of fluctuations, and its prices are short-lived. To make profits, you should try to speculate on the prices of Gold.
