| The latest edition of ETF Momentum Tracker, released today, offers an in depth look at gold prices, and how iShares' IAU has responded to the spike. 'Even though the price of gold fell last week' Dion said, 'it's been locked in the range of $850 to $990 since the July 15 spike-still historically high by almost any standard.'
The price of an ounce of gold fell by $31 last week, yet it was still up more than 11% for the year by Friday. The price of the metal, which peaked in March at $1,033 per ounce after the announcement of the Bear Stearns bailout, closed on July 25 down about 10% from the record and off 6% since July 15.
'Gold prices are still very strong,' Dion said, 'but this shouldn't come as a surprise.' Dion cited ongoing volatility in stock market, increasing concerns about inflation, elevated and erratic oil prices, and geopolitical turmoil in the Middle East as reasons that investors continue to flock to 'safe-haven, inflation-hedging gold.'.....Full press release Source |