Thursday, April 30, 2009

Today in Gold: Thursday, April 30

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 falls as stocks stage early rally"
Author: Sara Lepro

Main Points: After settling a tick above $900 an ounce yesterday, gold for June delivery dropped below the threshold today to finish at $891.20.

Gold and the dollar rallied today following a positive labor market report. The rally pulled back some amid the Chrysler bankruptcy announcement.

Gold has been stuck in a range between $870 and $915 an ounce for several weeks largely, according to George Gero, Vice President of RBC Capital Markets Global Futures, due to investor confusion.

"(Gold) is range bound because it seems that the stock market and the financials are just as range bound," he said. "You have a couple of down days and a couple of up days and the result is that investors are confused. And where there is confusion, people tend to sell rather than buy."

Analysis: Investors, though clearly confused on a day-to-day basis, do see hope. And when the market is already apparently near bottom, any glimmer of hope is a sign to buy -- because if you buy now while at the bottom, the profits will be significant throughout the rebound. This optimism, of course, does not help the value of gold.

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