Gold dealers see strong start to 2010
- Bruce Sands
A report by Dow Jones cites a softer U.S. dollar and positive economic indicators such as an improved manufacturing outlook in accounting for some of the current price rally in the gold market. The article notes that the price peaked at $1,124 on Monday, marking the highest price since December 17.
Another major factor cited by the news service was the strength of crude oil prices, which ties in with gold because funds typically invest in more than one commodity at a time.
Also on Monday, the stock market was experiencing a healthy start to 2010 because of the improved outlook on manufacturing, most notably in China.
According to the Institute for Supply Management, growth was seen in categories like new orders, production and prices, while customer inventories were deemed too low and inventories were said to be contracting. The ISM report also cited “steady and strong” business in the primary metals sector as well as “a nice rebound” for consumer activity in the nonmetallic mineral products sector.
Tags: Bruce Sands, gold dealer, gold101
March 8th, 2010 at 4:06 am
[...] example, now may be a good time to consult with silver and gold dealers about investment options in precious metals, especially in light of ongoing difficulty in the stock [...]