Wednesday, August 10, 2011
Gold Hit Life Time New High in Market
Gold Hit Life Time New High in Market
NEW YORK- Gold prices advanced Wednesday as fears of a global recession and a stagnant U.S. economy continued to plague equities markets.
After gold December futures settled at $1743 an ounce and soared to a new all-time high of $1783 during intraday trading yesterday, prices were gaining $30 to $1773 an ounce Wednesday morning. Gold has hit a high of $1777 and a low of $1740 so far today. Meanwhile, the spot gold price was rising by $28 to $1,773, according to Kitco's gold index.
While some traders have taken profits in the short term to cover losses in the equities markets, gold prices have continued to hit a round of highs recently. On Monday, the world's largest gold exchange-traded fund SPDR Gold Trust(GLD_) reported its highest daily inflows since May of last year at 23.6 tons, with holdings now just under the all-time high of 1,310 tons seen in June 2010.
Vote: Where will gold prices finish in 2011? After the Federal Reserve pledged to keep interest rates near-zero for at least two years, the Dow rebounded from Monday's market meltdown, shooting up more than 400 points by Tuesday's close.
With stocks plunging back into the red today, investors seem unsure of how to parse the Fed's statement. Although investors welcomed the extra clarity from the Fed, the indication that sluggish growth is expected for a prolonged time period was worrying investors. Volatility in the market remained high with the VIX, commonly known as the fear index, derived from options activity on the S&P, clinging to levels around 40. Heightened uncertainty kept Treasuries and gold as the two safest assets to store money.
However, a report by RBC Capital Markets did note that "today is likely to be quieter than the previous three sessions as the market takes stock ahead of the next move." With panic trades subsiding compared to Monday, the market has been trying to find a bottom in stocks, leaving open the possibility that gold prices could ease. Meanwhile, silver has not been able to keep up with gold's strong upward trend. Silver prices for September were losing 44 cents to $38.32 an ounce Wednesday.
NEW YORK- Gold prices advanced Wednesday as fears of a global recession and a stagnant U.S. economy continued to plague equities markets.
After gold December futures settled at $1743 an ounce and soared to a new all-time high of $1783 during intraday trading yesterday, prices were gaining $30 to $1773 an ounce Wednesday morning. Gold has hit a high of $1777 and a low of $1740 so far today. Meanwhile, the spot gold price was rising by $28 to $1,773, according to Kitco's gold index.
While some traders have taken profits in the short term to cover losses in the equities markets, gold prices have continued to hit a round of highs recently. On Monday, the world's largest gold exchange-traded fund SPDR Gold Trust(GLD_) reported its highest daily inflows since May of last year at 23.6 tons, with holdings now just under the all-time high of 1,310 tons seen in June 2010.
Vote: Where will gold prices finish in 2011? After the Federal Reserve pledged to keep interest rates near-zero for at least two years, the Dow rebounded from Monday's market meltdown, shooting up more than 400 points by Tuesday's close.
With stocks plunging back into the red today, investors seem unsure of how to parse the Fed's statement. Although investors welcomed the extra clarity from the Fed, the indication that sluggish growth is expected for a prolonged time period was worrying investors. Volatility in the market remained high with the VIX, commonly known as the fear index, derived from options activity on the S&P, clinging to levels around 40. Heightened uncertainty kept Treasuries and gold as the two safest assets to store money.
However, a report by RBC Capital Markets did note that "today is likely to be quieter than the previous three sessions as the market takes stock ahead of the next move." With panic trades subsiding compared to Monday, the market has been trying to find a bottom in stocks, leaving open the possibility that gold prices could ease. Meanwhile, silver has not been able to keep up with gold's strong upward trend. Silver prices for September were losing 44 cents to $38.32 an ounce Wednesday.
Wednesday, August 10, 2011
0
If you loved this post
This post was written by: deivam P Mohanraj
deivam P Mohanraj is a professional blogger, web designer and front end web developer. Follow him on Twitter
Subscribe to:
Post Comments (Atom)
0 Responses to “Gold Hit Life Time New High in Market”
Post a Comment