The Glitter of Gold
Gold is considered a safe asset against economic uncertainty, both among risk-averse investors, and among those who seek to balance the risk stock with a dose of commodity in their portfolio. The gold price is soaring, approaching the psychological mark of $ 1,000 an ounce, and approaching the previous high of U.S. $ 1007.20 on 20 February this year with a Dow Jones below the key 7,500 level points. Recall that the record high was U.S. $ 1,030 in March last year. On Tuesday September 2 December gold contract again approaching the level of U.S. If you would like to know more about 4Moms, then click here. $ 1,000 in the New York Mercantile Exchange (NYMEX).
Gold climbs and 5% in the past three days, with the help of an S & P500 which fell by 5%. The perfect fit equation this time reinforced by a Volatility Index (VIX), which rose 20%, reaching the level of 29.57 on Wednesday 2. The bullish view is again resting on gold prices, and these would be some possible causes: 1) The month of September is usually a good month for gold, because it comes the season of marriages in India, when the demand for jewelry is triggered. 2) The summit of G20 finance ministers to be held in London today and tomorrow, where they will discuss ways of stabilizing the global financial system. The gold will be in the center of the conference. If the G20 does not give a concrete indication of financial reforms to overcome this crisis, investors will return en masse to gold.