On Thursday the gold prices went down as the U.S Dollar gains strength. The U.S payroll reports are coming out on Friday and they are expected to come out better then the month before. This will deliver support to the fairly weak dollar, at least for a short term. In regards to gold this means that confidence in the greenback turned investors away from gold, shifting funds into dollar based instruments or even cash. Marketwatch reports on Thursday evening: "Gold for December delivery (GCZ10 1,338, +2.70, +0.20%) fell $12.70, or 0.9%, to $1,335 an ounce on the Comex division of the New York Mercantile Exchange." “Gold has been trading as a currency,” said Frank Lesh to Marketwatch, a futures analyst at FuturePath Trading in Chicago, referring to the close ties between the performance of bullion futures and the U.S. currency market. “Gold is clearly reacting to the dollar trade, as it has and as it will.”
The video answers the question whether the gold bubble is ready to burst.
There are some signs of a bubble, but market experts do not see it bursting any time soon. There seems to be agreement that the prices will continue to climb, but not in one straight line. There will be many corrections and dips on the way up. It might be a good time to jump into gold. Be it in the form of bullion coins, gold bullion bars, numismatic gold coins or in certain cases even gold related stocks. But be careful if you are going to invest in paper gold. The risks are shy high. In any case, do your own research.
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