Just in time for Mothers’ Day, the price of gold shifts downward a little more. Aren’t you glad to hear that good bit of news?
The downward trend was being driven late last week by consumer optimism about the potential for recovery in the economy. Housing sales are up around the country, even as prices remain low. The possibility of deflation is looming but not as ominous as it has seemed to be in recent weeks. It seems with Spring in the air, Americans are willing their dollar back to strength in the world market.
The unusual thing for commodities was that as gold fell, prices on other precious metals like silver climbed a little higher. Oil rose. And soybeans climbed up the ladder a little, too.
In fact, the majority of the stocks on the New York Stock Exchange managed to finish modestly higher after wavering through much of the day’s trading on mixed economic data and still slumping corporate earnings reports.
It was a private group that reported a contraction in the manufacturing sector is slowing, but the government meantime says that orders to U.S. factoreis fell more than expected in March. That isn’t the good news that most Americans were hoping for, but still the markets clung to the positives and in the end held their sway.
As for gold, what can this mean? Gold has had a good climb, hitting the $1000 mark early this year, far ahead of projections. But the sustainability factor for the lustrous yellow metal hasn’t been seen yet. Investors who flock to gold in uncertain times are now becoming more confident. With that confidence comes lessening interest in gold and its stability in uncertain economic times.
As investors become more confident, the appetite for risk becomes greater. This puts pressure on gold, making the safe-haven investment just a little less appealing.
However, the market’s disinterest may be to your profit. If you intended to buy “Mom” a bracelet or earrings for the upcoming holiday, the price of the metal may suit your purposes. You may wish to consider buying your beloved Mom a matching necklace as well.
After all, it’s not as though you can buy her a few bushels of soybeans from the Chicago commodities trading houses and still be welcome next Sunday for brunch. We wish you a great Mothers’ Day and hope you’ll remember that gold given as a gift is always a wise investment, even if it never returns “dollar per dollar.”
Category: Gold Prices