Los Angeles, CA – The precious metals markets made solid gains on the first day of trading in 2012. On Tuesday, Gold passed the $1600 an ounce mark and silver traded up as high as $29.73 an ounce, as bargain hunters were buying up precious metals taking advantage of the recent dip in prices.
Positive Manufacturing News, USD Loss Help Rally
The U.S. dollar traded lower on Tuesday based on short-selling for profit, and geo-political news out of Iran that has pushed the price of crude oil over $100 a barrell, making both gold and silver bullish. In addition, Financial, industrial and commodity shares led the S&P 500’s gain as the Institute for Supply Management’s factory index topped estimates and government data showed construction spending grew at more than twice the forecast rate. Factory output in Australia grew for the first time in six months and reports in the past two days showed a pickup in Chinese and Indian manufacturing. Favorable manufacturing news around the world caused a boost in the commodities market, also providing upward movement in gold and silver prices.
The first day of trading for the New Year is a “risk on” trading day, as indicated by higher U.S. stock indices and higher commodity prices. “You are starting to see people want to take more risks” said Frank Ingarra, financial manager at North Coast Asset Management LLC. “Manufacturing data has been pretty decent. A lot of people are focusing on the 2 O’clock Fed minutes”. News of the what the Federal Reserve intends to do to improve economic outlook in the U.S. will affect investor decisions in the short-term.
Take advantage of the recent price pull back in the precious metals market. Metals like gold and silver can protect your wealth by acting as a hedge against inflation and the weak U.S. dollar. For more information on how to convert a portion of your retirement account into a Gold IRA or a Silver IRA, or to purchase private gold and silver, please contact American Bullion today at 1-800-326-9598 or email us at email@example.com.