Gold Coin Prices Higher In Spite Of Good News
Gold spot prices closed up on Tuesday as investors shook off a midday downturn and rebounded on the heels of a strong consumer confidence reading. While the index showed that the nation’s consumers are more optimistic about the economy, many of the factors that fuel gold prices show otherwise.
After dipping below $1,087.00 during the trading day, gold prices climbed back to $1,099.50 per ounce at close, up an impressive $2.70 for the day and a strong $13.00 over its intraday low. Gold’s resistance point has been steady near $1,100 per ounce, and its climb back to that mark is considered by some analysts to be an indication of more upward movement.
Positive movement in the gold market is an opportunity for investors to consider profit taking on currently held bullion or re-entering the market if they are currently liquid. Since bullion prices are tied directly to the gold spot price, they react more favorably than certified rare coins for short term investments. For this reason, many investors prefer bullion over rare coins when they are only planning to hold it during a price cycle for a period of a year or less. Short-term investing with rare coins is not as practical because their prices are dictated more by their quality and market demand than by the actual price of gold.
With most economic factors still indicating difficulties for the United States and other countries in 2010, the forecast for gold is very positive. Investors should continue to watch the price movements of this precious metal and decide when is the right time to make new purchases or increase existing holdings.
Michael Williams
Senior Staff Writer - Gold-Coin.com
