Gold Prices Today Are Up – Can They Stay There?
New York (Jan 25) Gold prices today are enjoying a bump from investors seeking refuge from global marke t volatility.
Equities have suffered badly. Fears of an economic slowdown in China and dramatically lower oil prices appear to be the most blameworthy signals. Global economic activity has remained weak, with the International Monetary Fund's (IMF) recent 2016 and 2017 growth forecasts being cut.
Year to date, gold prices have acted well as investors look for shelter. The gold price is up $40, or 3.8%, and that's just since the start of 2016.
As for if they will keep climbing, here's what you need to know in our latest gold price news…
Your Latest Gold Price Analysis
The real action in gold price movement started Wednesday last week. The S&P 500 gapped down again at the open that day by 32 points, and oil lost another 6% to under $27 per barrel, a chip shot away from its December 2001 low of $25.96.
Gold price vs major currencies (2)
That frightened global markets, poisoning sentiment in North America.
At the worst, the S&P 500 was down a massive 64 points, or 3.4%, the Dow was off a huge 539 points, or 3.4%, and the Nasdaq gave up a whopping 92 points, or 2%. Most of these losses were recuperated by the end of trading; still, the S&P 500 printed its lowest close since October 2014.
Investors quite clearly flocked to gold, which started NY trading around $1,095 and climbed relentlessly until about 12:30 p.m. That's when it peaked at an impressive $1,110 for an intraday gain of $23 from the previous close.
Gold prices settled the NY close at $1,100 for a strong finish. Even the U.S. Dollar Index rose only slightly throughout the day and failed to attract any significant buying.
Thursday, Jan. 21, saw gold begin to weaken in the early hours to trade down from $1,100 just after 8:00 a.m. to $1,093 by 11:00 a.m. But then gold shot higher, climbing to close NY trading at $1,102.
Gold prices today are up $8 to $1,106.60 an ounce.
Now let's explore some of the other developments in gold that are worth following.
What's Moving Gold Prices Today – and Tomorrow
According to Reuters, the past week saw Asian gold demand weaken thanks to rising prices ahead of the Lunar New Year holiday. But this week could see strong buying return as we approach the Chinese New Year.
Indian demand has been relatively soft thanks to a rise in gold prices caused by a weakening in the rupee since the start of the year.
Source: MoneyMorning
