GOLD COULD BE STRONG BET AS STOCKS TUMBLE AND IMPROVEMENT GOES UNREALIZED
The Gold price dipped lower today as the yellow metal is set to post a 3.1 percent loss for the month of July. Strong U.S. employment numbers added to the current downward pressure on Precious Metals. Though reports point to a rebound in the U.S. economy, many individuals are not experiencing the improvement first-hand. Many of the jobs added are part-time positions, which leave countless underemployed. Income has yet to improve as Americans continue to watch the gas prices and other goods rise higher and higher. With looming geopolitical crises escalating, fear of a stock market correction and mounting national debt, many investors still feel the need to protect themselves with safe-haven assets like Gold and Silver.
U.S. stocks took a drastic turn downward today as a global selloff of shares has left the Dow Jones Industrial Average down over 300 points today. “The Fed is stepping out of the way and the market’s valuation is high enough that people are quick to take profit,” Wayne Wilbanks, chief investment officer at Wilbanks, Smith & Thomas Asset Management LLC, said. “You are going to get more days like today, where investors are more trigger happy, quicker to liquidate. Everybody knows a correction is coming and it will come.” If a correction in major stock indexes were to hit markets, Gold would most likely benefit greatly due to the metal’s inverse relationship with equities.
At 5 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,283.00, Down $13.40.
- Silver, $20.42, Down $0.18.
- Platinum, $1,464.20, Down $17.70.
- Palladium, $873.60, Down $7.50.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.
« Return to Commentaries