Feb
20
Written by:
Steve Patterson
2/20/2009 2:16 PM
Gold Rallies on Economic Uncertainty
SPDR Gold Shares (GLD) rallied to a three month high today on fear the economy will get worse before it gets better. The ETF which strives to stay inline with the price of Gold Bullion moved from $73.45 a share to an intra-day high of $98.99 share over the past three months as investors seek security.
The Dow Jones Industrial
The Dow Jones Industrial fell to a 6 Year low on continued bank weakness. Moving below 7,400 represented a 6 year low for the major US index that tracks the 30 largest companies in the country. Investors might still be liquidating assets even after a long-term pull back in the markets which have fallen nearly 47% from their highs.
Banks Collapse Again
Major banks in American continued their rapid decline with Wells Fargo falling 25%, Bank of America moving 24% lower and Citigroup falling near 30% before recovering slightly mid-afternoon. Rumored nationalization of the banking system has led to speculators betting on further declines leading to down pressure of the financials. No one seems to want to hold the stocks over the weekend with such rumors circulating.
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5 comment(s) so far...
Re: Gold Rallies on Economic Uncertainty
our economy does need to get worse before it gets any better, at this point i think the stimulus plan is only going to do push the dirt under the carpet.
By moborock on
2/24/2009 7:54 PM
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Re: Gold Rallies on Economic Uncertainty
Gold is the traditional safe haven during times of uncertainty so it's not really surprising that prices are what they are today.
By Peter Smith on
2/26/2009 11:47 AM
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Re: Gold Rallies on Economic Uncertainty
Gold price on the sky.
recession has turned everything down.
By Pinky on
2/27/2009 7:59 PM
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Re: Gold Rallies on Economic Uncertainty
Interesting chart and a reflection of the economy definitely. I'd point out that should the gold price spend any significant time below 85$ then it sets a weaker outlook for the medium term trend. I'd be looking for continued at current levels to maintain the trend, a fall back to high 80s wouldn't be unexpected but it needs to rally from there to continue. It's interesting that twice already in the last 12 months we've seen the price challenge the 100$ level but both times it's failed to make it. I have a sneaky feeling it will try and fail again.
By best stock trading software on
3/3/2009 12:04 PM
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Re: Gold Rallies on Economic Uncertainty
the banks have collapsed because the banks caused this to happen because they lent the money to people that were not capable of paying the borrowed money that the banks lent
By almir bojkovic on
3/7/2009 11:13 PM
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