Gold Trades Near Six-Month High as Dollar Falls; Silver Slips

The price of Gold is rising on a daily basis, and on September 4th 2009, it traded at a six month high! As the value of the dollar falls, consequently the value of gold rises. This was seen as the value of the greenback fell by 0.6%, with the price of gold hitting the value of $999.50.

This article reminded me of the time when gold was a monetary value and was traded as a basis of fiat money. After World War I, through the Bretton Woods Agreement, gold was substituted by fiat money. However, with the rise in gold and the decline in the value of the dollar, it almost feels as though gold as an asset is back and is here to stay!

Analysts believe that the value of gold will continue rising till early 2010, and then reduce in value as the US dollar gains importance.

Read on...