Gold prices took a beating Tuesday, plunging nearly 2% and marking the yellow metal’s worst day of the year.
Goldman Sachs (NYSE: GS) must really want to buy more gold; this week it repeated yet again its forecast for gold prices in 2014 to drop to $1,050 an ounce.
Gold Prices in 2014: After two days of declines, gold prices were up today (Wednesday).
Spot gold was last quoted up $12.40, or nearly 1%, at $1,293.20 on bargain hunting and short covering. Precious metal traders, however, remain guarded ahead of Thursday’s European Central Bank meeting and Friday’s closely watched jobs report.
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the bigger story affecting gold prices was the FOMC’s decision to alter language on when the Fed would start to consider an increase in interest rates once U.S. employment reaches 6.5%.
Owning some gold has long been a part of the Money Morning investing philosophy. After all, gold offers some insurance against the dollar-debasing policies of the U.S. Federal Reserve.
Why gold is up today: Gold prices on Tuesday morning staged the biggest advance since mid-October. Gold prices ended Tuesday’s session sharply higher, hitting a three-week high. February gold gained $28, or 1.5%, at $1,262.20 an ounce. Spot gold added $22.70 to reach $1,263.50 an ounce.
It’s been another painful week for the precious metal amid what’s been one tough year for gold bulls.
Gold futures ticked up Friday, following a two-day dip that left gold prices at levels not seen since early summer.
In mid-afternoon trading, gold for December delivery inched up 0.13%, or $1.60, to $1,240.90.
We all know that, so long as the Fed keeps the printing presses on, the risk of a worldwide currency crisis gets even higher.
Gold prices are the honey badger of precious metals right now.
As 2011’s very popular YouTube video showed us, the honey badger makes moves that don’t make sense – it “don’t care.”
And neither does gold.
Gold moved sharply higher Tuesday thanks to a weaker-than-expected September jobs report – and our country’s employment situation is yet another reason why gold prices are up today and will resume their climb…
