The U.S. stock market suffered its third straight day of losses on Wednesday and the dollar slipped after disappointing government data had investors worried about economic growth.
The Nasdaq was the biggest loser, falling more than 2% after news of a merger between Kraft Foods and Heinz Co. triggered a sell off. The Dow lost 292.6 points, or 1.62%; the S&P 500 lost 30.45 points, or 1.46%; and the Nasdaq lost 118.21 points, or 2.37%.
Unexpectedly weak data from the Commerce Department showed that durable goods orders fell 1.4% in February, the third decline in four months. The data also showed that business investment fell for a sixth straight month in February. U.S. 10-year treasury yields fell after the report, which signals further concern over the economy.
“Companies are actually investing less now compared to a year earlier in unadjusted terms. A soft global economy and soaring dollar that’s made it harder to sell U.S. exports are among the headwinds that are constraining American businesses.”
Gold, on the other hand, posted its longest rally since August 2012 after the spot price rose for its sixth straight session. It closed at $1,195.47/oz. on the COMEX, just shy of the key $1,200 level.
The bull market in stocks seems to be losing steam, and gold is still at a relatively low price compared to its 2011 highs. Perhaps it’s time to take some of your stock profits off the table and buy gold and silver. If the stock market were to make a major correction, you wouldn’t want to have all your eggs in one basket. Gold can diversify and protect your portfolio from economic uncertainty or a stock market crash, and helps keep your money out of the hands of Washington and Wall Street. Call American Bullion today at 1-800-326-9598 to speak with a precious metals broker about adding physical gold or silver to your portfolio, either through a Gold IRA rollover or a cash purchase for insured home delivery. You may also request your Free Gold Guide by submitting the form at the top of this page.
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