See How The US Dollar And The Greek Bailout Plan Affect Gold Coin Prices With The Help Of GoldCoin.net

March 4, 2010 – Additional strength in the US dollar and a plan to lower Greek debt have combined to affect gold coin prices today. After three days of gains, gold prices dropped $7.60 to $1,133.00 in mid-afternoon trading.

The US Dollar Index increased to 80.58, up 0.590 today as:

• The Purchasing Manager Index increased to 53.00, exceeding the 50.00 number that indicates economic growth

• The weekly unemployment rate dropped to 469,000, its lowest number in nearly two years

• Non-farm productivity rose to 6.9 percent in the 4th quarter of 2009, giving the year the biggest gain in the statistic since 2002.

The Greek government announced a series of measures designed to further reduce its deficit, including $6.5 billion in pay cuts and tax hikes, a 10-year bond sale to raise $5 billion, and a 30% reduction in holiday payments to civil servants. ECB President Jean-Claude Trichet said that such action was "exactly appropriate taking into account the present situation."

While the dollar reacted favorably, gold coin prices didn’t fare as well, giving back a portion of the week’s gains. "The metal still has to overcome resistance around $1,146 and $1,162 and is still vulnerable to E.U. and euro-related pressure, particularly as the threat of a ratings downgrade for Greece remains," said analysts for one Internet website today. It is likely that gold coin prices will continue to react to changes in both the movement of the dollar and the success of the Greek plan. 

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Kevin Johnson

Senior Staff Writer - GoldCoin.net