Wednesday, 16 July 2014

Gold Slips Below $1,300

It’s been a brutal week for gold, with prices finally stabilizing marginally below $1,300. On Monday gold dropped 2.3%, the largest one day drop in all of 2014 so far. Gold prices bounced off lows in early trading on Wednesday, up $3.44 to $1,298.07, while silver was up $0.05 to $20.72.
Published in Gold Investing
On Wednesday, the Federal Reserve announced it would keep its rates low for a while to allow the economy to recover. The thinking behind the announcement is that with lower rates in effect, businesses would be more inclined to invest, thus stimulating economic activity. The day after the announcement, gold bolted $41.40 to $1,340 an ounce, and silver $0.87 to $20.65 per ounce. Although precious metals are in a customary slow phase as the summer months take hold, investors clearly saw that maintaining a cash position would yield them little or no interest, so they jumped on the opportunity to pick up precious metals at low prices.
Published in Gold Investing