The markets are always screwy, messing with investors, keeping the game of prospects interesting – so it is no great surprise that gold, after taking a dunk on December 31 to the lowest slump in a long time has recently bounced back to a wonderful new high. Such is the way with precious metal; such is the way with the markets; so it is the highest we’ve seen in six weeks – indeed since 2011.
Platinum meanwhile had climbed, keeping in step with strikes in South Africa. Palladium, another precious metal, is also swinging up to its highest since Nov. 12. Where is the gold market now? It rose 0.5 percent bringing it up to $1,260.07 an ounce, a height it hasn’t seen since Dec 11, and was even at $1,257.81 at 9:11 a.m.in Singapore.
China is the great consumer of gold at this point, surpassing even India in its market. They recently produced a benchmark contract with the Shanghai Gold Exchange, on January 17, letting the gold value bounce back from a bitter December 31.
“Pre-Spring Festival demand in China is good and investors buying into ETFs aids sentiment,” said Wang Xiaoli, chief investment strategist at CITICS Futures Co., a unit of China’s biggest listed brokerage, according to the Bloomberg News. “Mixed data in the U.S. is positive for gold. However, the overwhelming view still seems to be for a steady reduction in stimulus.”
With the mixed news about unemployment looking better in the U.S., but housing looking worse, this will tip the scales slightly towards a degree of optimism: always refreshing for investors as well as for the rest of us.
image: nyfed.org