The price of gold retreated today on the Feds announcement that they were most likely done cutting rates. This announcement came while oil continues to rise and the market remains shaky.

Gold, which is one of those safe havens for dollars, especially when the dollar is weak as it is now, may suffer at the hands no more rate cuts. However, this might only be temporary. Oil is continuing to rise sparking talk of a recession and everyone is feeling the pain of inflation and rising food prices. So why won’t gold follow suit.

Although this is a blog on gold, you have to look at as a commodity slice of the whole market. Prices are going up on all commodities because there is a rising demand for all commodities while there isn’t as much a supply. This means higher prices.

The FED may be trying to curb inflation but will they kill golds rise? I’m guessing not. Gold may be at great price to buy right now.

The price of gold per ounce headed higher today after a week long drop in price from it’s high of just over $1000. Gold came out of the weekend under $900 but has since climbed back over the mark and is inching ever so slightly back towards that high.

While the stock market continues to show high volatility and interest rates continue downward, the price of gold hasn’t seen a drastic sell-off as some analysts are saying. We’ve heard the price is too high, there isn’t enough demand and gold isn’t a safe haven for a weak currency or market anymore.

Well, we’re not sure if those words of wisdom are true but we do know that the price of gold continues to increase and the next time it’s down below $900 might be a good time to buy, even if the market does rebound. But we’ll wait to see if it ever gets a chance to get back below that price point?

The markets, US and around the world have been in a very volatile state, no doubt in response to the mortgage fiasco going on in America. Gold and other precious metals have mostly followed this turmoil and seen a large increase in price since these types of investments are considered safer.

But is gold really a safe buy when the price has fluctuated from $1000 down to it’s current day price of $885 per troy ounce? Seems pretty volatile just the same as the rest of the markets. However, you do get to own a piece of tangible goods as an investment when you buy gold directly. So that, I imagine, makes some people happy. Unlike owning a company stock that you don’t know too much about.

Well, with the markets down, and gold well below it’s high of a few weeks ago, this may be a great time to buy. But precious metals are not for the faint of heart right now. Buy gold with caution if you are thinking about it at all.