Another Price Drop for Gold Brings Out Bargain Hunters

Friday, 25 January 2013
Written by  GulfNews.com
Published in Gold Investing
The price of gold dropped again today, hitting its lowest level in two weeks. More data was released showing that the world’s economy continues to gain steam, and with investors feeling high about the good news, gold has taken a hit. That being said, the low price for gold is really starting to bring out the bargain hunters again.

First-Strike

After gaining overall in price and finishing 2012 as the thirteenth year in a row for gains, the yellow metal currently sits as the only precious metal in the red so far this year. All the other major players have made gains, but it seems like right now gold is taking too hard of a hit.

Manufacturing in China and the United States grew this month at the fastest pace in about two years, while data suggesting German growth picked up boosted hopes for a swifter Eurozone recovery.

Together with data showing a five-year low in US jobless claims last week, the data sent Standard & Poor’s 500 index to a seven straight session of gains on Thursday.

“It now seems that the stronger tone in global equity markets, coupled with a notable easing in European and US market tensions, is leading to short-term pressure on gold,” said Ed Meir, an analyst at INTL FCStone, in a research note.

“We think [this] will continue for a little while longer given that negative chart picture are also contributing to the sloppier tone,” he said.

Spot gold fell to $1,663.11 (Dh6,108.76) an ounce, which was its lowest in nearly two weeks. By a bit later in the trading period it pared losses to trade flat at $1,667.44, headed for a weekly decline of nearly 1 per cent, its sharpest loss in about a month. US gold inched down 0.2 per cent to $1,667.30. As you can see, overall numbers for the yellow metal are not very good as of this minute.

However, if you are a bargain hunter, then right now is the time to invest in as much gold as you can buy. Lower prices for the precious metal mean a much bigger return on investment for you if you can buy the yellow metal and afford to sit on it for a little while.

Original Article: GulfNews.com

Read 1321 times