Gold Still Steady After Yesterday's Bottom

As the Wall Street Journal Online reports, gold has partially recovered from its $91/oz plummet. In mid-afternoon, spot gold rallied to over US$1160 and pulled back a little; it ramped up to over $1165 in the evening. This morning, however, that gain has largely evaporated. As of the writing of this post, spot gold's down to $1144.20.

The WSJ article explains why: Fed Chairman Bernanke "reaffirmed that interest rates are likely to stay low." An expert quoted there said that too many dollar/gold traders were caught with their pants down when the greenback shot up.


Another inflation-related commodity's having a difficult time. Oil's down to below $73/barrel, thanks to a strengthening U.S. dollar.