Purchasing Magazine reports the dollar is strengthening.
Earlier this week, an more bearish forecast by precious metals analyst John Nadler at the Kitco bullion dealer’s Canadian branch in Montreal put the precious metal bullion's price somewhere between $680 and $730 for the remainder of the year. That outlook would put the 2008 annual average gold price around $800/oz, as opposed to the earlier consensus projection of $924. Manufacturers use gold in electronics and medical applications as well as in jewelry.That probably means the price of oil will be falling as well. Which will take some of the strain of American consumers. It will also reduce the strain on the whole economy since energy is fundamental. OTOH American manufacturers who export are going to have to improve their processes. However, importers of raw materials will be in better shape.
“The U.S. dollar has recently begun to show initial signs of strength as the fundamental picture for the dollar has improved substantially in recent weeks, Goldman Sachs reports, adding that “as the dollar is now expected to strengthen…we are lowering our gold price forecast.”