GOLD ENDS HIGHER AS DOLLAR WEAKENS; ANALYSTS PREDICT MARKET DROP
As investors focused on Wall Street’s rally, the pullback of the dollar helped the Gold price rise in afternoon trading. Although equities market gains usually pull money away from assets such as Gold, such was not the case today. According to one Precious Metals analyst, “It appears that the daily trading of Gold is almost exclusively risk on/risk off. Today with the Dow hitting all-time highs, it is risk on.” The analyst went on to say, “It is hard to imagine that the stock market has much further to go, especially where the economy is today versus where it was in 2007 when it hit its previous all-time high. Unfortunately, for the individual investor, they are seeing the Dow at all-time highs and are trying to chase the stock market instead of properly diversifying.”
Although today was a record day as the Dow Jones Industrial Average hit its highest point since October 2007, some analysts are warning that today’s bull market will soon subside. Market analysis by investment bank and asset management firm Piper Jaffray suggests that a market retreat is in the near future. As part of the analysis, Leah Williams and Craig W. Johnson stated, “We now believe we are at the first of three market pivot points this year and suspect a drop is now likely to unfold over the next several months.” Meanwhile, the latest survey by the American Association of Individual Investors shows the largest decline in bullish views among investors in almost two and a half years.
At 5:00 p.m. (EST), the APMEX precious metals spot prices were:
- Gold, $ 1,577.10, Down $0.10.
- Silver, $ 28.71, Up $ 0.06.
- Platinum, $ 1,589.60, Up $ 1.90.
- Palladium, $ $735.00, Up $ 21.60.
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