Monday, April 27, 2015

Gold Prices Weaken Awaiting Fed

After a swift surge in late March and early April, gold prices have turned around, losing some 2 percent in the past two weeks. And the pros say that with a general lack of fear in the market, there’s little reason to jump into the yellow metal just yet.

“Equities markets are again at all-time highs and keeping safe-haven gold buying to a minimum, as there is clearly no fear,” Bill Baruch, senior market strategist at iiTrader, wrote in a note to clients.

The lack of fear is also weighing on the CBOE Volatility Index, which generally measures how much investors are willing to pay for insurance on the S&P 500. On Friday, the VIX closed at its lowest level of the year.

“If the U.S. economy or the global economy continues to improve and if the dollar continues to strengthen, I think gold prices will potentially continue to suffer,” Jimmy Lee, CEO of Wealth Consulting Group, said Friday on CNBC’s “Trading Nation.”

via CNBC

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