Gold and the metal’s exchange traded funds (ETFs) jumped for a second straight day yesterday on a rush of safe-haven buying.
The metal closed above $900 an ounce after a rush of save-haven buying took place on economic fears, reports Pham-Duy Nguyen for Bloomberg. This means that in the last two days alone, the price has surged more than 15% – the most since futures debuted in 1975.
On Wednesday, gold jump $70 for a 9% gain. The price jump was the most over, while the percentage gain was the biggest since September 1999. Gold is still off its all-time record price of $1,033.90, which was reached on March 17.
Silver jumped 8%, and over the last two days has rallied 21%. It was the most since 1979. But silver is still down 15% for the year, while gold is now up 7%.
Gold, along with other precious metals, and physical commodities are often seen as a hedge against inflation and a safer bet for investors on Wall Street. Volatility is expected to be around for a while, so keep your stomachs strong.
Look for ups and downs in:
- PowerShares DB Gold Fund (DGL), down 0.3% year-to-date
- SPDR Gold Shares (GLD), up 0.5% year-to-date
- iShares Comex Gold Trust (IAU), up 1% year-to-date
- iShares Silver Trust (SLV), down 19.1% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.