Many investors hold the theory and understanding that gold and silver typically moves upward when stocks move down.
Today exemplifies that school of belief, as gold and silver rallied against sagging stocks, even the intraday record of $1,478 an ounce. when and if that occurs, TheStreet.com predicts that it will “most likely bring technical traders back into the market — the “hot” money that is typically responsible for big price swings. The next target for gold is the psychologically important level of $1,500 an ounce.”
Excerpt:
“Gold and silver were gaining as investors bought gold instead of stocks after U.S. initial jobless claims rose by an unexpected 27,000 last week to 412,000 — past the critical 400,000 mark. The jobs environment had been slowly improving so the number, along with stronger world-wide inflation and anxiety over earnings, led investors back into precious metals.
…
“[F[or Friday the story will really be about inflation. Producer prices in the U.S. rose 0.7% in March, weaker than expected, while the core reading came in slightly hotter at 0.3%. Inflation in March is supposed to rise to 2.6% and a higher reading Friday could trigger another gold rally as investors bet the Federal Reserve won’t raise rates fast enough to fight rising prices.”
