Gold Rushed: Investing in Gold

The dollar finally had a little bump yesterday against the Euro which sent precious metals retreating after making large moves last week. Oil has been trying to help gold buyers regain some confidence in the metal but to no avail.

Gold, for the second straight day, fell $20 plus per ounce in trading. Gold stands at less than $870 per ounce while just Friday it closed at over $900. The Fed signals which have been making gold prices bounce around are at it again. Today with talks of a fed rate hike on the horizon, gold was not good for those invested.

However, those looking to purchase gold may be able to buy gold at a quite a discount to recent highs. Those willing to risk more possible pullbacks could be able to get into gold now and wait for the next run-up. Although we can’t be sure there will be another precious metals rally, the erratic market would tend to lend to these types of spikes in safer investments like gold.

Buying gold has been good choice for the past year. Huge gains have made a lot of investors who dumped the dollar, dumped stocks, a lot of money. The price of gold reached $1000 per ounce not too long ago and looked like it wasn’t going to stop any time soon.

Then the stock market came around, the housing bust didn’t seem like such a bust anymore and the world wasn’t so sour on the dollar. The price of gold quickly dropped below $900 per ounce. And it has stayed there ever since, bouncing every once in a while but then profit taking takes over to bring it back down.

Is the reason for the drop a good reason? Not sure, but the dollar is still down, the market isn’t turned around that much, and oil is still rising rising rising. If oil is on it’s way up and inflation seems like its going to be the tale of the summer, why the pull back in gold?

If anything, I would think the price of gold would continue to rise, but we shall see.