Spot gold fell for the third straight session in early trading today and faces further losses when Wall Street opens for business. A stronger dollar and relative calm in Ukraine has dented gold’s appeal as a hedge against investment.
For the first time in months, there is a modestly positive outlook around the globe. Positive economic data in the US indicates the global economy is getting stronger and there is optimism the Ukraine crisis can be resolved without further violence.
As a result, stock market traders are pulling out of precious metals as market sentiment turns towards dollar backed investments. The greenback is enjoying a two-month high against a basket of other major currencies and dealers are taking advantage of the uplift to make some quick gains in equities.
The emerging economy is good news for long term prospectors of precious metals. With the global economy gaining momentum, gold and silver prices will continue to fall and offer up attractive prices for investor looking to top up their pensions with the most valuable safe haven assets.
Gold prices have tumbled 3% in the last three days and look set for a further decline today. Having closed on $1258.60 after trading closed in New York on Wednesday, the yellow metal lost a further $5 by midday GMT as the Asian market followed global cues.
Technical indicators, and analyst predictions earlier in the year, suggest prices will continue in a downward trend – for the time being at least. There may be peace in the world at the moment, but history shows that the value of gold can be triggered skywards at any given moment.
There is a lull in the Ukraine crisis for the time being and peace talks look promising, but with Russian president Vladimir Putin due to meet with the French Premier Francois Hollande in Paris on the 5th June, tensions between West and Russia could be revived.
Rebels in the eastern region of Donestk have appealed to Russia to offer support, whilst new President of Ukraine Petro Poroshenko has vowed to take action against rebels and has appealed for full military assistance from the US.
Buy gold today
Precious metals is a particularly volatile market and gold prices can be pushed up at the first sign of trouble. With the geopolitical annexation of Crimea far from over, it is in the best interests of investors to take advantage of low gold prices whilst they are floating around the $1250 price point.
Physical demand for gold bullion is expected to increase in the coming days and dealers only have limited supplies of gold coins and bullion bars. To make sure you don’t miss out on deals whilst spot prices are low check out online dealers today.
coininvest.com has a wide selection of gold bullion products at great prices. By adding precious metals to your investment portfolio you can expect to make a great return on your investment when the next global crisis sends spot prices soaring.