Yesterday, gold rose initially prior to selling in the futures market saw gold fall $6.30 to $1,153.10 in New York and ended down just 0.5%. Silver slipped 50 cents to $14.78 per ounce. Gold in euros and sterling fell by slightly more but still outperformed falling stock markets.
- Today’s Gold Prices: USD 1,154.25, EUR 999.35 and GBP 730.56 per ounce.
- Yesterday’s Gold Prices: USD 1,153.50, EUR 1,005.93 and GBP 734.34 per ounce.
Gold in GDP, 1-year
Gold performed well considering the stock market bloodbath yesterday. The fact that it is was only marginally lower despite market carnage bodes very well indeed for the coming months.
Frequently, gold is correlated with equities in the very short term and can fall when stock markets suffer sharp one day corrections. However, over the month and the quarter, gold has an inverse correlation with equities.
Gold appears to have once again anticipated the crisis and is acting like a safe haven in recent days – just at the moment when western investors need a safe haven and wealth preservation most.
We appear to be on the verge of new bear market in stocks and as we have been warning for some months now there is a real risk of a 1929 or 1987 style crash.
It is time to take stock and reduce allocations to equities and increasing allocations to cash and gold bullion.
Gold glimmers as global market fear grips investors
Gold last week broke above its 50-day moving average as a fresh round of negative news from around the globe rekindled investors’ interest in the yellow metal as a safe haven.