Uncertainty about the pace of the economic recovery both at home and abroad, as well as a currency that’s in flux, has gold and gold exchange traded funds (ETFs) responding in kind.
What’s pushing gold up, down and all around these days?
- Concern about Greece. Thankfully, the debt-riddled country has pushed through billions in budget cuts. While they’ve sparked unrest in the form of strikes, this also means that the European Union could extend a bailout package to further assist the nation. [Gold ETF: Fact and Fiction.]
- Safe Haven. Remember back in 2008, when investors couldn’t get enough of gold and other safe-haven instruments? While the economy looks much better now than it did then, there are still a lot of questions that lack clear answers. When will consumers begin to really spend? When will jobs come back? And that real estate recovery…how is that coming?
- Currencies. As the crisis in Greece deepened, investors were loath to hold the euro. While the dollar has been gaining ground on the euro, there are skeptics who doubt it will last. Those skeptics found a home in gold as a currency alternative. [Precious Metals and the Regulators.]
Gold prices yesterday settled at $1,139.90 an ounce, down slightly from the highest price it reached since Jan. 11.
For more stories about gold, visit our gold category.
- SPDR Gold Shares (NYSEArca: GLD)
- ETFS Gold Trust (NYSEArca: SGOL)
- iShares COMEX Gold Trust (NYSEArca: IAU)
- PowerShares DB Gold Fund (NYSEArca: DGL)
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.