Market Watch 9/08/2009

Today, gold price rose above $1000 per ounce to its highest level since March 2008.

Gold prices have risen mostly because of a weak dollar that’s driving people to other investments they perceive as safe. The U.S. dollar continue to weaken on Tuesday on concerns related to the massive stimulus spending by the U.S. government to spur the the slumping economy, which some worry could eventually lead to inflation. As inflation grows, the value of the dollar could shrink.

The gains in gold came as other commodities rose.

The Dow Jones industrial average rose 56.07, or 0.6 percent, to 9,497.34. The broader Standard & Poor's 500 index rose 8.99, or 0.9 percent, to 1,025.39, and the Nasdaq composite index rose 18.99, or 0.9 percent, to 2,037.77.