A host of factors including positive economic data from the US, the S&P 500 Index registering an all-time high, and easing tensions between Russia and Ukraine, have pushed gold prices down to a 16-week low Gold prices have receded to a four-month low as positive news flows weaken ‘safe-haven’ demand for the lustrous metal. Global investor confidence seems to have strengthened considerably, and even yesterday’s poorer-than-expected report on US economic growth in the first quarter of 2014 failed to have an impact on spot gold prices, which are still hovering around $1,254. Economists had estimated that the US economy would contract 0.5% quarter-over-quarter in 1Q14, whereas the US GDP actually contracted 1% as severe weather cast a chill on economic activity in the first three months of the current year. US Data & Global Developments According to recently-released data, investors have cut their bullish positions in the precious metal for the second consecutive week, while short positions have more than doubled since mid-March. On Tuesday, the US consumer confidence index (CCI) rose to its second-highest level since 2008, which indicates that American citizens are growing increasingly optimistic about the economy and the labor market. The index climbed to 83 from 81.7 a month earlier, above economists’ mean estimate of 82.3. Data also revealed that orders for long-lasting durable goods had increased in the month of April, backed primarily by increased demand for military equipment. Bookings for durable goods increased 0.8% after a revised March advance of 3.6%.
Overall, the price of gold is still pretty high considering how well other investments are currently doing. The other precious metals seem to be the same. I wonder if it's more to do with people holding on to the metals do to the high price paid or if people are still buying them in hopes that they will hit highs once again.
It will go back up. The market is always up and down, nut gold is definitely something that will never lose it's value overall.
I'm longterm bullish on gold. I treat it the way I do other investments - I go in and buy more when it's sold off heavily.
"Gold loses glitter" but have you not heard of the term: "All that glitters, is not gold." hahahahah sorry i had to say it
Prices are usually a bit low around this time of year to be honest, they'll likely be higher in a few months. Not that I would be especially optimistic because gold has been around the 1200-1300+ range for quite a while now.
I have to agree with most of you guys in that the price of gold, while experiencing a slight dip, is probably going to rise again. This is mostly because of the fact that the world has been experiencing more demand for gold while supplies have been diminishing. As electronics use more gold for its electric conductivity and emerging markets use more consumer electronics as well buy more gold as a status symbol, prices will rise. Moreover, many mines have had to extend far deeper into the earth just to maintain output, much less increase it. In addition, many mines have had to shut down due to output dropping to unprofitable levels. While deep-sea mining as well as other more lucrative sources could become more viable as time goes on, I believe that prices will continue to rise for at least the next few years.
Gold is the one thing that can be trusted. Not for it's initial value but simply for the fact that humans will always perceive it as valuable in way or another. (Read: IN CASE OF APOCALYPSE)
