Gold is off to a great start this week! After struggling just below $1200 for weeks, gold prices began to pick up Monday as stocks slid. Tuesday, the yellow metal hit a six-week high, closing at $1,232 an ounce. Meanwhile silver surged by more than 5%.
Bloomberg gave their 2-cents on gold’s recent performance, saying:
“Since Nov. 7, the metal has climbed 9 percent from a four-year low. Signs that central banks in Europe and Asia will increase money supply reignited gold’s appeal as a store of value. Swings in oil prices are increasing bullion’s volatility as traders judge the outlook for inflation.”
Does this signal a change in the market tides, or is it just another temporary wave?
Here’s what James Cordier, the founder of Optionsellers.com in Tampa, Florida, had to say:
“Stimulus from every corner of the global economy is now entrenched, and that’s bullish for precious metals. This is a change of sentiment in a huge way, because investors stopped looking at U.S. interest rates possibly rising next year, to see the fact that every other major economy is easing at a breakneck pace to try and quell the slowdown.”
Photo courtesy of goldinvestingnews.com