At present, worldwide stock markets are bouncing around with no clear recovery in sight. As soon as the media talks up the market, it just as quickly reverses, savaging traders. How can you profit in a downward trending and volatile stock market?
Oil prices have moved up around $130 per barrel based on limited supply, triggering fears of inflation. This causes price increases in everything from petrol and diesel prices to fertiliser costs. Any increase in fuel costs makes it more expensive to distribute goods. This means that prices will increase.
Consequently, the DJIA fell nearly 200 points, or 1.5%. What is the future for gold as oil prices increase?
The last posting on the price of gold discussed whether the price would go up or down. Gold was at a cross roads near critical support points. This article gives some insight into the short term and medium term direction.
Gold prices continue to be range bound. There has been some downward movement in the past few days, but is this a sell signal, or a buying opportunity?
The long term trend of gold is up. This has been discussed in a previous article on this site. While the US economy and the US dollar are in a precarious state, gold offers a safe haven. For those who doubt the relevance of gold, remember that for the past 6,000 years, paper currencies have come and gone, but gold represents the true store of financial value.
BIS, the Bank of International Settlements gives the same weight to gold as to deposits of cash for banks. Gold is still regarded as a solid asset, unlike equities, derivatives and mortgages.
So we know that gold has a bright long term future, but how about the shorter term? This article discusses the near term prospects for gold.
This week we’ve seen a rally in the greenback as the Federal Reserve stepped in to save Bear Stearns from collapse. Is this the start of a recovery for the US dollar (which has been brutally sold off for quite for some time), or just a temporary reprieve?