COMEX Gold futures prices ended sharply lower Tuesday and hit a fresh three-week low, as investors worldwide are keenly focused on the potential for nuclear reactors in Japan producing catastrophic meltdowns.
Spot gold last traded down $35.40 at $1,394.00. Spot silver also dropped along with Gold as investors rush to sell precious metals at higher levels. This high nervousness has caused most markets worldwide to sell off, save for U.S. Treasuries. Investors are looking forward to liquidate positions and move to the sidelines or into cash.
Gold's safety doesn't extend to periods of true crisis. Like stocks, commodities and bonds, Gold is also vulnerable. It is a cash cow and today as the Japanese Nuke disaster looms large on the world, Gold is the only commodity that is sold at a pace more than what the radiation levels are spreading.
On Thursday, Spot Gold rose as high as 1,401.90 USD which is up 0.29 percent an ounce. Silver climbed to 34.503 USD an ounce in international market.
It may seem a bit out of character for Precious metals to be heading south at a time world seems to be plagued by human tragedy and political turmoil, but Analysts are of the opinion that it’s also time for many investors to book profits in short position. Investors are doing what they should; Investors in international market are grabbing this dip price to build their long term investment.
There’s been a lot of speculative activity in Gold and silver, so people are taking the time right now to take profits. In a rush for liquidity a sell-off in gold is not a big surprise. Analysts finds it very encouraging to see investors taking advantage of low prices to add precious metals to their portfolio.
If you look at the way gold and silver have been trading today, they have come off the lows of the day, which forces the belief that people are buying the dips. Therefore, there is no doubt that the long-term uptrend is very much there for Precious metals. A near-term correction will just act as an opportunity to add on to exposure to Gold and Silver
