Thursday, March 5, 2009

Today in Gold: Thursday, March 5

Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:

"Gold Rises, Halts Eight-Session Slump, as Stocks Fall; Silver Gains"
Author: Pham-Duy Nguyen

Main Points: Some investors purchased gold as an alternative to slumping stocks today, thus driving up the price of gold for the first time in nine sessions. "As equities continue to liquidate, we can see safe-haven buying in gold," said Tom Pawlicki, an analyst at MF Global Ltd. in Chicago. Gold for April delivery rose to $927.80, up $21.20 since Wednesday close. While gold has slumped since briefly eclipsing $1,000 per ounce, it has still risen a total of 4.9 percent this year.

Why are investors buying gold? Jeffrey Christian, a managing director for CPM Group in New York, says that they "are buying gold due to financial market fears."

It's not only that investors are buying it, but experts recommend it. Analysts at Jeffries Group Inc. say that "we continue to think investors should own gold as a hedge against the increased riskiness of other assets."

Analysis: After a brief rise yesterday, gold again struggled to close the day. That close appeared to be "rock bottom," or at least for now -- in line with what some experts were projecting. Gold is looked upon favorably during these times – particularly in a long term view – but it will be interesting to see if the price continues to rise tomorrow after such an impressive one day jump.

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