Love it, hate it but can’t ignore it. I am talking about Gold. Like i mentioned in my early blog, when the dollar becomes stronger, gold will see a downslide. This was true this week with dropping oil prices and resurgent dollar. Gold prices tend to fall when energy prices drop, as the yellow metal is generally seen as a hedge against oil-led inflation.
Gold is trading around 606$. The dollar climbed for a second straight day, gaining support from a recent run of upbeat economic data that has lowered expectations the Federal Reserve may cut interest rates in coming months. Recent economic data show economy is slowing, but there is no sign of sharp slowdown.
According to commodity experts/analyst, gold will be higher in the latter part of the year, but short-term sentiments are a bit shaky. It is believed that gold will be in demand with the unresolved situation in Iran and tension in the Middle East.
Silver is trading around 12.60$, with platinum around $1,120 and Palladium laround $338 an ounce.
Keep close watch on gold/silver stocks. You will find alot of cheap stocks.
Gold Stocks: GG, NXG
Silver Stocks: CDE, HL, SLW