Gold for December delivery rose 0.7% to $1,243 an ounce by 11:29 a.m. EST on the Comex, the third straight gain and the longest rally for gold since August 14.
Meanwhile, the stock market has largely erased its 2014 gains amidst investor concerns over global economic growth, corporate earnings, and the Ebola virus. The Dow, S&P, and Nasdaq each fell by over 2% in one of Wall Street’s worst-performing days since 2011. “Overwhelmingly bad news is outweighing good news at the moment,” said Karyn Cavanaugh of Voya Investment Management.
In related economic news, inflation in China has dropped to an almost five-year low, oil prices are falling, and the Eurozone continues to suffer from a slowdown in growth.
CNBC’s Futures Now: Is this gold’s moment to shine?
CNBC’s Futures Now segment touched on gold’s 1-month high, interviewing two traders on the topic. The first trader notes that as the global economy continues to slow, investors are looking for somewhere to put their money and seem to have chosen the gold market to do so. The second trader adds:
“When people think about going beyond that traditional portfolio of stocks and bonds, and where the bond market is, I think gold is a really nice tangible asset here … I think having that diversified portfolio, you’re going to see more people get attracted to gold, because at the end of the day, it has been a safe haven for thousands of years.”
If you are interested in diversifying your retirement portfolio by adding physical gold or other precious metals, call American Bullion today at 1-800-326-9598 and ask about transferring your current IRA or rolling over a former 401(k) to a Gold IRA.