The price of gold falls on US rescue package
As we mentioned on a previous post, gold has been a counter cyclical play for many investors in troubled times. The price has proved to be very resilient and moved higher and higher over the last few months as the worldwide recession got worse and worse. However, interestingly we saw a 2.4% pullback today when the US Senate announced a $780 billion rescue plan for the US economy. So have we seen the price of gold peak and are the US and worldwide economies at a turning point?
This is not the first time we have seen a substantial US package move the markets and induce a wave of optimism throughout the investment arena. While the emergence of Barack Obama as a very much hands-on US President has encouraged many investors and analysts there are some who believe it is too early to call the bottom of the worldwide economic cycle. While the price of gold has fallen, indicating a move away from the so-called safe haven of this precious metal, it is worth remembering that in January alone the price rose by 5%.
It remains to be seen whether the fallback in the gold price is a short-term bout of profit-taking or perhaps a turning point in the worldwide economy, but it is worth monitoring the price of this precious metal very closely.
Share this..
Related stories
Isle Of Man credit rating under review
Fresh from a surprise 24% reduction in the Isle of Man's budget forwarded by the UK government, it has been revealed that credit rating company Moody's has placed the island's credit rating under review. The current Triple-A status is in line for a possible downgrade purely and simply because of the 24% reduction in the government's budget which Alistair Darling has already confirmed is non-negoti...
Read MoreUK employment at record high levels
15/05/2015 UK unemployment continues to fall to record low levels, as the number of people out of work falls to 1.83 million. Official figures from the Office of National Statistics show that the number of people out of work between January and March fell by 35,000 and was the lowest figure in seven years. The total number of people in work rose to 31.1 million. The employment rate in the UK...
Read MoreWork Programme failing over 70% of claimants
21/10/2015 A committee of MP’s has found that almost 70% of people made to go through the governments welfare-to-work scheme are not successful in finding long term employment. The £5 billion Work Programme, which was designed to help the long term unemployed find a job, is “not working well” for people with “complex problems”, according to the Commons Work and Pensions Select Co...
Read MoreOwn up to offshore accounts now
HM Revenue & Customs (HMRC) is encouraging investors to disclose any money hidden in overseas accounts now before the serious crackdown on tax dodgers starts on July 9th.Taxpayers will be given a 16-day reprieve after the deadline for declaration of intention to disclose on the June 22nd but thereafter there will be no mercy for those who intentionally hide their taxable accounts.Steve Besford, he...
Read MoreBrits have no incentive to save
A recent report from the Office of National Statistics shows that people in the UK are starting to save less.According to the ONS study, the proportion of income saved by Brits fell from 5.3 per cent in the third quarter to 3.7 per cent in the last quarter of 2006. This represents the lowest ratio since the end of 2004. This investment trend is backed up by a review by the Investment Management As...
Read More