Skip to main content

Nightmare for GOLD?



By: Muhammad Numan


Gold prices drops as U.S. Economy strengths most since the end of 2011.

After reading the below article, I think I should buy GOLD and holds it for at least 2 Months. No doubt that for now Dollar have the upper hand but I think we will see prices going upward again in the coming quarter. GOLD will come out from this Nightmare soon.


Gold fell after a government report showed that the U.S. economy gets stronger last quarter at the fastest rate since 2011, crimping demand for the metal as an alternative investment.

US GDP rose at a 4.6 percent annualized rate, compared with an earlier estimate of 4.2 percent, government data showed today. A measure of inflation, which is tied to consumer spending and strips out food and energy costs, climbed at a 2 percent annualized pace. Yesterday, gold touched an eight-month low.

The metal is headed for the first quarterly loss this year surrounded by low inflation and bets that the U.S. recovery will prompt the Federal Reserve to boost interest rates before its glance. According to the Bloomberg Spot Index, the Dollar headed for the biggest monthly gain since May 2012 against a basket of 10 currencies.

The GDP report “is not good news for gold as the inflation number is not a hot number, and also there is growth,” Edward Dempsey, the chief investment officer at Pension Partners LLC in New York, said in a telephone interview. “It’s clear that inflation is not a cause of concern.”

This quarter, the metal has declined 8.1 percent, while the dollar headed for the biggest gain since September 2008.

Aggregate gold trading was 24 percent above the average in the past 100 days, according to data compiled by Bloomberg.

The metal tumbled 28 percent in 2013, ending a 12-year rally, on expectations that the Fed would scale back stimulus as the economy recovers.
The central bank cut its monthly asset purchases by another $10 billion to $15 billion this month, keeping it on track to announce an end to the program in October. Policy makers also raised their median estimate for the federal funds rate at the end of 2015 to 1.375 percent from 1.125 percent in June.

“A further rise in the value of the dollar and upward adjustment in expectations about the path of Fed interest-rate hikes in 2015 will, in our view, result in investor-position liquidation triggering more price weakness” for gold, Georgette Boele, a precious-metals analyst at ABN Amro Group NV in Amsterdam, said in a report.

Silver futures for December delivery rose 0.6 percent to $17.537 an ounce. Yesterday, the price touched $17.27, the lowest since June 7, 2010.

This year, gold has climbed 1.1 percent, and silver has dropped 9.5 percent.
Labels:

Comments

Post a Comment

Popular posts from this blog

THE HISTORY

E verything that existed in this world has its history, if we talk about Humans they have their history, if we talk about Animals or Plants they have their history and same goes with Foods and Machines, so where ever we look or whatever we see has its history.Now today we are going to talk about the HISTORY OF STOCK MARKET .  The History of stock market is as OLD as Ancient World. It has the up and downs like we humans have in our lives. It's not a one day show it took centuries for it to get here at this  point where it's now become so easy to invest in stocks that one can do it in PAJAMAS on his/her bed.
Post a Comment
Read more

Stocks Basics: What Are Stocks? (Part-1)

Source: Investopedia T he Definition of a Stock Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing. B eing an Owner Holding a company's stock means that you are one of the many owners (shareholders) of a company and, as such, you have a claim (albeit usually very small) to everything the company owns. Yes, this means that technically you own a tiny sliver of every piece of furniture, every trademark, and every contract of the company. As an owner, you are entitled to your share of the company's earnings as well as any voting rights attached to the stock.
Post a Comment
Read more

Stocks Basics: Introduction

Source: Investopedia W ouldn't you love to be a business owner without ever having to show up at work? Imagine if you could sit back, watch your company grow, and collect the dividend checks as the money rolls in! This situation might sound like a pipe dream, but it's closer to reality than you might think. As you've probably guessed, we're talking about owning stocks. This fabulous category of financial instruments is, without a doubt, one of the greatest tools ever invented for building wealth. Stocks are a part, if not the cornerstone, of nearly any investment portfolio. When you start on your road to financial freedom, you need to have a solid understanding of stocks and how they trade on the stock market.
Post a Comment
Read more