Gold worse performer in September

After a feverish investor interest propelled Gold prices into peaks of $1900 in August, gold prices have fallen in September and the metal is the worst performing asset when compared to S&P 500.

At COMEX, gold prices have fallen to $1772 on September 15 after opening the month at $1821, a decline of over 2.60% for the month. The S&P 500 index meanwhile is down by a marginal 0.73% at 1209 after opening at 1218.

Fundamentals

-Even though, concerns of a Greek default and Euro zone economic crisis remain, the European leaders and the European Central Bank (ECB) have been assuring investors that a Greek collapse will be avoided. This seems to have eased investor fear somewhat. However, only a strong action and fiscal restructuring measures can satisfy investors in the long-term.

-The US economic outlook remains murky. The positive industrial production surge in August provides hope. But, it will be the unemployment figures that will be the key. Unemployment rates have been climbing and unless the US takes measures to bring it down, economic recovery looks unlikely. As such, one has to wait to see what Obama $450 billion jobs package adds to the economy. – Source: http://www.commodityonline.com

Posted by VBN on Sep 18 2011. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry