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February 4, 2016

Gold futures settle at 15-week high

by gold-nugget

Gold futures settle at 15-week high

gold bars m- gold futures

Today, April gold futures climbed $14.10, or 1.3%, to trade at $1,141.30 an ounce. Many believe that if stock market volatility continues investors are likely to continue to move some of their portfolios into gold for safety factors.

Also, the silver futures for April climbed 44 ½ cents per ounce, to close at $14.73 per ounce.

It’s interesting that while the stock market has had one of its worst starts for the new year that I can remember, the gold price seems to have been steadily climbing upward. But, then again, gold seems to do best in times of stock market stress. This inverse relationship seems to be fueled by the worry of economic uncertainty.

As we seem stock markets throughout the world take a huge hit at the start of 2016, stock market investors need to protect their principal, and this is the main reason for the improvement in gold futures and the gold price.

So, while most commodities have seen their prices crumble because of oversupply and the slowdown of the Chinese economy, gold futures have benefited.

Crude oil has dropped this year almost 18% this year to a low of almost $26 a barrel. Actually, one major commodities index, dropped last month to its lowest level since 1991.

 In light of these factors gold has come out a winner because it is the least affected by a global slowdown. Now, it’s a fact that gold is still well below its record high of almost $1,900 an ounce which was set in 2011. Actually, it was just about six weeks ago that gold a six-year low of $1049 an ounce!

 Near the end of 2015 gold fell in reaction to the Federal Reserve Board’s decision to increase interest rates for the first time in almost 10 years. Now, many market watchers think the feds interest rate reduction move was premature.

 Rising interest rates are usually a negative for the gold price. So, if interest rates remain stable or decreased slightly from here, this could be a big boost for gold futures.

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Gold futures settle at 15-week high

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