Oct 7, 2011 7:52 am
This week some strange things began to happen in the gold markets. Particularly there was an uptick in the price of gold, one that many economic side-line viewers and myself predicted as inevitable when gold seemed to be slipping over the last few weeks. The strange thing was not the slight uptick of course but that it occurred as stocks surged. This is not a common occurrence.
As stock prices go up, generally folks begin to feel more comfortable investing in those somewhat risky business ventures being sold on Wall Street. At those times real world assets with steadier value like gold start to dip in price. These are the moments when a NYC gold refinery tries to maximize it's acquisitions. Instead though this week continued to be a good one for the price of gold. Largely economists see this as a result of the lack of certainty in the futures market.
With better than last month employment numbers expected to be released tomorrow could end up pushing the prices at New York gold refineries even higher. When there is no need to sell an equity like gold people tend to hold on driving the market higher. This could end up being a pretty great month for gold!