1/28/2016, 6:32 PM (Source: TeleTrader)
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Cool investors stick with gold

Gold spot prices saw losses in the trading day, to trade 0.91% lower at $1,114.24 per fine ounce at 6:30 p.m. CET.

The prices have gone down after some investors may have decided to cash in from a Wednesday's rally, which brought the prices to a three-month high. However, the movement was not quick, after the U.S. Federal Reserve gave a cautious note on the pace of interest rate hikes in 2016.

The Fed kept the same basic federal funds target rates in the range 0.25-0.50%. The comment that it was "closely monitoring global economic and financial developments and is assessing their implications for the labor market and inflation, and for the balance of risks to the outlook," outlined Fed's concerns that any move it may have planned should have soothing effects for the volatility in the global markets.

This could send a message to a patient investor that keeping the dollars in the coat of gold would be better than looking for safe investment in the seesaw price changes in the stock markets. If the American central bank expects the inflation to "rise to 2 percent over the medium term", that would make a place for at least one rate hike in during 2016. The dollar would then become greener.

Those investors who invested in gold exactly a month ago, before the New Year holidays, now enjoy healthy profits. While gold was on the losing side for the last three months, there is another picture if one looks into data on a year-to-date basis.

In the meantime, the oil prices have shown huge volatility, indicating that the health of the world economy is dented not only by the black gold oversupply. Choosing between a stock, a barrel of oil, a stack of greenback, or a bar of gold could be a tough choice, but not for a seasoned and patient investor.

Breaking the News / ZR