Monday, May 18, 2009

Today in Gold: Monday, May 18

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 slips as stocks rise, economy concerns support"
Author: Felix Salmon

Main Points: Although gold for June delivery fell $8.60 to $922.70 an ounce today, experts are still optimistic about the investment.

"The outlook for gold is a lot better than the outlook for the U.S. economy," said Charles Kernot of Evolution Securities. "There is still a lot of uncertainty in terms of the outlook for the global economy...People are now looking at it being a much slower recovery (than expected)."

Analysis: The positive and the negative seem to cancel each other out. Some question the strength of gold since it hasn't been able to sustain any momentum during ideal conditions. A possible cause of that is the damage that a poor economy (and a higher gold price) does to the retail jewelry industry. On the other hand, the economy is still not good, and if things do turn around inflation is likely to follow.

Will gold rise dramatically? Probably not. Will gold drop dramatically? Probably not. Treading water in the $900 - $950 range seems about right.

1 comment:

  1. There are many scrap gold that people have that they are not using anymore. There are gold necklaces and bracelets that have broken chains. So with this, it is better to sell them that to stock it inside your jewelry box.