Gold hit a record high on Tuesday in its biggest three-day rally since the depths of the financial crisis in 2008, as investor fears over the threat to the global economy from the European and U.S. debt crises hit assets seen as higher risk.
Though spot prices retreated from highs as stock markets opened higher in the United States, they remained up 1.4 percent on the day at $1,739.60 an ounce at 9:42 a.m. EDT, having earlier peaked at $1,778.29.
“The short run uptrend is intact,” said VTB Capital analyst Andrey Kryuchenkov. “Panic dominates for now and even though we have rebounded a bit on the broader market, people will still fear liquidating substantial gold longs.”
The price of gold hit a record high this week, climbing to over $1,700 an ounce. With panic rising and the stock market falling, some people are considering investing in gold or moving funds from the volatile market into gold.
Is the price enough to drive you to the pawn shop? We want to know: have you or are you planning to sell any gold? Have you thought about digging through an old drawer or jewelry box for gold to sell? What will you do with the money?
Gold has risen by about 7 percent this month, driven by flows of cash out of equities, bonds and currencies, after the United States lost its top-notch credit rating.
The US dollar ticked down against major currencies following the release of Fed’s rate decision at 2:15 pm ET Tuesday. The Federal Open Market Committee or FOMC , Fed’s policy making arm, maintained its key interest rate unchanged at between 0.00 percent to 0.25 percent. Presently, the greenback is trading near 1.6266 versus the British pound, 1.4295 against the euro, 0.7187 versus the Swiss franc and 76.97 versus the Japanese yen.
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