Since 2000, gold has been one of the investments they make more consistent, high in the field of financial investment. The natural resource has returned brilliant in annual profit rate of return of about 16 percent over the past eight years. However, after setting a new record high $ 1020 per ounce in early 2008, gold has become obsolete. This has been particularly evident in recent years as investors have been concerned more in moving back into more risky investments, including stocks.
Following its rise of more than $ 1,000, made a diving gold gradually back to about $ 700 in the second half of last year. As the stock market actually fell sharply in late 2008, the economy turned sour in early 2009, gold speculation picked up again and talk of a return to $ 1,000 intensified.
Gold has been in a slow and steady decline in recent weeks, though, as stocks rose. The Dow Jones recovered significantly after falling by below about 6,500 and now sits comfortably above 8000. Only in the last two days, the spot price of gold has fallen from almost $ 900 per ounce, with a rate Current (April 16) of $ 874.30 per ounce.
What does the rate of gold have to do with the actions? While the correlation between the economy, stocks, and gold is not always so strong, unstable economies tend to push investors into safer investments. Gold has been considered as one of the safest bets by speculators money. It is a unique product that derives most of its value from its value as an operating reserve. When are loaded with cash and coins, investors trust the safety of gold, driving up demand and price.
So where for the gold? A look at short-term technical charts show the gold may be on a fast course down to retest its lows near term around $ 700 per ounce. If the end of the recession is near, a break below the $ 700 mark a reversal could produce much more potent trend in recent years.
And the signs, there are several on Thursday that a recession may be the pace of recovery from Fed Chairman Bernanke keeps could arrive late this year. Jobless claims came in lower than expected 610,000. Construction of new homes slowed but the decline in new homes are flattening, potentially creating a fund. Google JPMorgan analysts and excited with the best revenue. This collection modestly positive sign for the economy raised hopes for change, and the shares rose because of it. President Obama warns Americans still to be patient and diligent.
There is no guarantee that just because the economy and the stock may change, that gold could reverse its medium-long term direction. Goldmoney.com founder James Turk has declared many times that gold could be in the thousands of dollars per ounce range in a few years, based only on inflation and global instability. However, it is difficult to imagine that as investors move back into shares and other growth investments, gold that interest is not reduced. Gold has maintained a constant pattern up and down against the dollar for 30 years.
Neil Kokemuller
10:37 PM EST
Thursday, April 16th, 2009
Neil Kokemuller is Associate Professor of Marketing at Des Moines Area Community College in Des Moines, Iowa. He holds an MBA from Iowa State University. Also in stock commentator market household living in the UK charts, where you can find real time charts and prices actions.
Note: The information provided in this article is intended for informational purposes and entertainment, not as advice for financial decisions or investments. Action taken on the basis of shared information is at the sole risk and discretion of the person. Forex investment represents a significant risk of loss.
About the Author:
Neil Kokemuller is an Associate Professor of Marketing at Des Moines Area Community College in Des Moines, Iowa, USA. He has a MBA from Iowa State University. He is also in house stock market commentator at Live Charts UK, where you can find real time charts and share prices .
Article Source: ArticlesBase.com – Is the gold rush over?
Gold Price Rising & US Dollar Collapsing
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