Gold is More Than a Safe Haven Play

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...with the motion sickness caused by markets' gyrations it is easy to overlook how well gold has actually performed relative to equities in general.

On August 9 the bullion price was slaughtered by $12 together with an avalanche of selling across just about all financial markets, with the exception of government bonds. Whether is was simply a question of massive liquidation across the board, or whether it suited central banks to orchestrate a lower gold price as they started pumping cash into markets, is an open question. However, with the motion sickness caused by markets' gyrations it is easy to overlook how well gold has actually performed relative to equities in general.

...the price of gold has been steadily clawing its way higher since a low of $642 towards the end of June. Secondly, gold has outperformed the S&P500 Index by almost 7% since the start of the credit squeeze...

And let's not fail to mention that throughout gold's many whiplash movements, it is still holding above its 200-day moving average, often used as a gauge of the primary trend.

Another bull point in gold's favor is that it is not only making headway in U.S. dollars, but also in most major (and minor) currencies...

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