Gold futures prices are on the rebound today as a demand for a safe haven again has dominated the market, and investors invest to preserve their wealth. This was the highest gain for gold, which may be at the end of the correction, after speculators took their profits after a strong increase in price.
Another reason for taking gold profits last week was investors had incurred losses in other markets, so they had to cover those losses with the strong profits they received from gold, which had been on a roll. Gold ended the week down by 4.2 percent, the deepest plunge since December.
Continued economic concerns in the European Union are also contributing to today's rise, making gold again the choice as the most safe place to stash our money.
The market is still regurgitating the news that the Bank of Spain has taken over a major savings bank in the country, CajaSur, which has experienced major defaults because of the ongoing recession. Most believe this is just the first of many which will fail, with the depth of the failure an unknown, but one that will continue to rock the markets, and drive up the price of gold.
Gold was up to $1193.50 an ounce, or $16.50 as of 12:30 p.m. Est.
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