The stock markets are pretty volatile these days with huge up-and-down swings happening almost on a daily basis (the past month has produced 5 of the 10 largest drops of the Dow). At the same time, gold, which I follow quite closely, also had some roller coaster rides lately, but the general trend of gold is the same as that of the stock market: down. The bullion has traded around $690 an ounce just a couple of days ago. That’s the low of the year!
So what happened to gold? Has it bottomed out, as this article on Goldprice.org indicated? If you are interested, here’s a free video presentation from INO TV explaining the movement of gold price recently. The analyst in the video also says gold is currently oversold and due for a rebound. A rebound seems to be a sure thing, in short term at least, as it happened following some significant drops before. For the long term, I am still looking at gold as an alternative investment that provides diversification to my portfolio, though I don’t exactly use gold as a hedge against inflation.
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