Gold down for the day, up for the week
However, gold finished up around 2% overall for the week, which isn’t too bad.
The most actively traded contract, for June delivery, fell $20.40, or 1.2%, to settle at $1,660.20 per ounce on the Comex division of the New York Mercantile Exchange.
While the price did drop today, the overall price as compared to last week was up around 2%, as stated above.
These numbers continue to roll in based on the current news and economic status of many of the world’s markets.
While there hasn’t been any news lately that has been too troubling (although investors didn’t like hearing the Fed say that they were not going to inject the economy with more money right now), gold has been at somewhat of a standstill.
Prices of the yellow metal have bounced up and down for the last 10 days or so, but overall the metal remains in somewhat of a stall.
For some people this is a bit surprising since so many analysts had been projecting a run towards the $2,000 per ounce price mark relatively soon.
Many see that gold may be struggling with a dollar that has become stronger than it has been in recent months and years.
Some believe that this may just be due to the relative power of the Euro declining due to the ongoing European debt crisis and shaky economic climate.
However, this isn’t the main reason gold is at somewhat of a standstill.
“One of the bigger risks to being long gold is if the risk-off trade returns,” said Dave Meger, director of metals trading with Vision Financial Markets, referring to bets on rising prices.
Gold, he said, could see further losses if money managers start paring their holdings of commodities and equities in anticipation of a worsening of Europe’s financial position.
While this statement may have some truth behind it, it is still only speculation.
Statements like this are starting to pop up around the gold world, as investors are either nervous or becoming frustrated that gold hasn’t started climbing towards $2,000 per ounce yet, which is what many predicted it would do.
Some see the situation with silver in a similar light, although as I have previously written, demand for silver remains quite high.
My view on gold remains the same: buy, buy, and buy some more, if you can.
The reason being is that it is still gold, and gold will have value no matter what, unless tomorrow every single person in the world decides that gold is worthless which is obviously not going to happen.
Right now gold can act as a protection for your money, and then later when it gets a more solid footing to make a run at that massive price point mentioned above, you will receive a nice return on your investment.
If you’re like me, you will use this time to do some bargain hunting and shopping for the yellow metal. Don’t let nervous investors stop you from investing, especially given the economic uncertainty so prevalent nowadays.
The above article is for informational purposes only and is not a solicitation by End the Lie or Goldco Direct. It is the commentator’s opinion only and not intended for investment recommendations, and does not necessarily reflect the views of End the Lie or Goldco Direct. Any references to outside sources are believed to be accurate. Past performance is not a guarantee of future results. All commodities involve risk. Investors should consult their financial adviser before making any investment decisions.