How now for gold?

Gold and The S&P 500, 2012 YTD, daily

With the recent drop in US share prices and simultaneous run up in gold prices the yellow metal now is slightly ahead of equities, up some 10.60% YTD compared to the S&P 500 which is up 10.28%, so where to invest? Lets take a look at few factors that might influence metals in the near term: first, last week the Commodity Futures Trading Commission’s weekly commitment of traders report showed speculators moving into goal, silver and palladium while funds moved out of platinum. Speculators are also short copper which, as I’ve pointed out before, is a negative for equities. Of factors to consider: Israeli military action (safe haven) in Gaza, Bank of Japan hints at more easing, and the entire US “fiscal cliff” possible probable (definite?) debacle. Finally, big money is seen moving more money into gold, so things are looking pretty good for another Q4 spike in metals.

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