Link Seen Between Certified Gold And Other Commodities Posted by James Randolph on February 04, 2010
4 February 2010 – Analysts are watching a strengthening positive link between certified gold and other key commodities in the midst of the dollar’s recent resurgence. As the US Dollar Index has raised in the past two months, gold, stocks, precious metals and other commodities have been seen as trading together and against the dollar.
This link between commodity-based and equity-based assets is perceived to be the result of investors acting in fear of a strong recovery by the dollar. During the bull run of the past decade, gold has not reacted nearly as aggressively to positive movement by the dollar. After two months of uncertainty, there is movement in the gold market at the hint of negative news, as witnessed by today’s drop of over $12.00 per ounce in anticipation of US jobs and banking news to be released on Friday.
The question for many traders is whether they should be nervous about certified gold as an investment. The best place to look for a clue would be the actions of futures markets and large fund traders. The futures markets have stayed relatively steady in the last few weeks, with April futures up slightly and December futures moving still higher. ETFs have also been steady, with some funds even increasing holdings of bullion in spite of outflow caused by nervous investors.
For the professionals, certified gold is still a strong investment. Falling prices caused by fear offer the opportunity to purchase addition gold at lower prices, making higher profits in the future possible. Investors should talk with a certified gold exchange and consider investing like the pros, resisting fear and picking up additional gold while lower prices are available.
Senior Staff Writer – Certified Gold Exchange