U.S. Gold Sets Record High While Stocks Languish in the Doldrums
Investor’s once again showed just how wary they still are over the strength of the global economic recovery, pushing gold prices up to record highs for the second day in a row. Stocks are still seen as just to risky especially with the constant financial woe’s emanating from the (EEC) European Economic Community.
Rising to $1,263.70 an ounce for August delivery earlier in the day and eventually settling down to $1,258.30, beating Thursdays high settlement record of $1,248.70 for a rise of $9.60.
Speculation is rife that gold will top $1,300 an ounce in the near future; especially if the world’s major economies do not settle down and start fostering investor confidence. Gold has always been seen as the most solid of refuges in times of worrying financial uncertainties.
A steady rise of around 12 percent since January shows were the majority of traders are steadily investing their money. The gold rush has also helped push up the pricing on silver, platinum and palladium where these precious metals are used in the industrial and manufacturing sector. This in turn has helped mineral stocks such as Newmont Mining Corp. and Barrick Gold Corp. on the New York Stock Exchange.
As long as investors keep hearing mixed economic news in the U.S. along with the growing financial crisis in the EEC, then speculative investing will remain tight for the foreseeable future. Throw in the mess occurring in the Gulf and the speculative woes for future financial growth gain even more ground. How much will this catastrophe end up costing the country as a whole through loss of jobs, business, resources and the ongoing financial effects?
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