US stocks reversed course Wednesday, making a 240+ points swing from down 154 points to close the session up 90 points.
As stocks turned around, gold also got a boost to reach a new record of $945.80 an ounce. The precious metal rallied after a government report showed that inflation picked up stem in January with CPI rising 0.40% and core CPI 0.30%, both exceeded expectations. Year-to-date, bullion has gained more than $100. Gold based exchange-traded funds (ETFs) are the bright spots in a disappointing market so far. Among gold ETFs, streetTRACKS Gold Shares (GLD) has returned 13.07% in 2008 and iShares COMEX Gold Trust (IAU) gained 11.16%. It’s obvious that gold is quite hot these days. However, if you look at platinum, you will know what’s hotter. Platinum price has risen $532 an ounce since the beginning of 2008, that’s equivalent to a gain of nearly 35%.
BTW, crude oil also made a run to close above $100 a barrel for second day in a row. Pretty soon, we are going to feel the pain at the pump
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