Since the news on Sunday of Osama bin Laden’s death, many commodities, especially precious metals, has been marked by high volatility. Will the killing of bin Laden have long term effects on the US and World economies?
Precious metals have enjoyed a spectacular rise today after the Federal Reserve signaled that interest rates will stay low for an extended period of time, no changes to policies or forecasts and telegraphed the end of its bond-buying program.
Gold continued its three day run up $40 per ounce since the start of April. Driven by inflationary fears, political instability and high oil prices, the next key resistance level may be $1500 per ounce. However, as nations raise interest rates, gold may be headed for a correction.
The price of gold remained generally flat Tuesday, up $1.70 to close at $1428.80 per ounce. However, the trend for increasing prices should be supported by rising inflation numbers surrounding sustained high oil prices.
Gold fell more than $33 per ounce on the day as investors look for liquidity to raise capital in light of the Japanese disaster. The increasing fears of a full nuclear meltdown and the crash of the Japanese markets which lost 14 percent on the day, have attributed to investors seeking safe heaven currencies.
We are pleased to introduce a new weekly series of precious metal fund commentaries and analyses. The primary objective for these initiatives is to provide informative online resources for investors about some investment opportunities for individuals that may be interested in risk diversification, economies of scale and increased liquidity.
Are investors gaining confidence in the economy by taking their money out of gold, or is the lowered gold price a correction in a continuing upward trend?
Gold futures wavered between gains and losses Monday, struggling to break a four-day losing streak.
Larry W. Reaugh argues that gold and silver could once again back global currencies.
ETF Securities USA LLC announces that the total assets under management of its six products now exceed $3.5 Billion as of January 4th, 2010.
Tuesday, May 3, 2011