Posts Tagged ‘MF Global’
Gold at New 2-Month High on Investment Fears
Gold reached a new high level since July 1st today as the investors continued to bet on the weaker global growth and bought save haven assets, including the bonds, some currencies and all the precious metals.
Gold takes a prominent position among the commodities — unlike crude oil (which is reacting quite badly to the latest recession signals), the gold futures are the major beneficiary of the ongoing market uncertainty. It’s rising for the second day in a row today, with the beginning of its latest uptrend wave being on July 28. Gold is a nice alternative to the bonds with more volatility and margin trading.
The commodity is going up along with the silver, palladium and platinum. We’ll continue to witness a strong positive correlation between the gold and the US treasuries in the future. Tom Pawlicki of MF Global Ltd. said about it:
Gold can continue to compete with Treasuries for investment as opportunity costs of holding gold are low due to falling interest rates.
Spot gold is now trading at $1,238.74 as of 17:29 GMT after closing at $1,229.92 yesterday. The historical maximum for the gold is located at $1,264.78.