The Dow Jones yesterday posted its lowest % gain, making it 8 consecutive days of positive growth. As a matter a fact, the Dow has rose 10.3% in 2013 alone!. From the looks of thing, the so called "mini Dow train" has finally slowed to a chugging speed albeit managing to equale the 8 day gain streak last seen in February 2011. The positive performance of the Dow has adversely caused the gold price to shed approximately 6.3% in 2013.
What's there to expect next?
Analyst expect that the Dow will continue to post positive gains due to the recovery in housing market and a pickup in employment rate. Positive corporate earnings as well as the continuing Quarterly easing to stimulate the economy will continue to boost investor's confidence.
I don't expect the gold price recovery to happen anytime soon and should continue to dwell below the USD1600/oz range for the next couple of months. If the gold price breaches the USD1600/oz line, that is a good sign that gold price recovery is at hand.
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Cheers and Happy Investing!
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