Gold Takes a Beating
08-12-08 Gold Hits 8 Month Low
Reuters is reporting that the recent plunge in the price of gold is likely due to the strength in the US dollar which is still near a 6 month high causing investors to “jump ship”.
Note that wording… “investors jump ship”. This is what has annoyed me for so long. Investors speculation driving the price through the roof rather than the demand for the metal itself. Exchange traded funds adding to this mania harming more than are helped. Add to that oil hitting its lowest level since May and as suggested, I agree that sentiment has turned negative.
I say negative investor sentiment in both gold and oil is a very good thing for all the folks who actually use it.