Gold (GC=F) April futures opened at $4,898.50 per troy ounce on Wednesday, down 0.2% from Tuesday’s closing price of $4,905.90. The gold price trended slightly higher in early trading.
Gold declined last week after positive economic data lowered expectations for interest rate reductions this year. The next potential price catalysts to watch include the release of the FOMC minutes on Wednesday, PCE data on Friday, the Chinese holiday, and ongoing U.S.-Iran nuclear discussions, according to Ed Egilinksy, Managing Director, Head of Global Sales/Distribution & Alternatives at fund manager Direxion.
Minutes from the Fed’s last meeting should clarify why the committee held interest rates steady in January and what the expectations are for the economy going forward. PCE data is the Fed’s preferred inflation gauge, Egilinksy explained, and the Chinese holiday could “dampen demand for precious metals, particularly gold, over the coming week,” he continued. As well, any breakdown in nuclear talks between the U.S. and Iran could heighten geopolitical uncertainty and boost safe-haven demand for the yellow metal.
Learn more: Gold alternatives? How to invest in silver, platinum, and palladium.
The opening price of gold futures on Wednesday was 0.2% lower than Tuesday’s close. Here’s a look at how the opening gold price has changed versus last week, month, and year:
One week ago: -3%
One month ago: +6.3%
One year ago: +70.1%
On Jan. 29, gold’s one-year gain was 95.6%.
24/7 gold price tracking: Don’t forget you can monitor the current price of gold on Yahoo Finance 24 hours a day, seven days a week.
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There are different ways to invest in gold, and each has pros and cons. Four common options are:
Physical gold
Gold mining stocks
Gold ETFs
Gold futures
Physical gold includes jewelry, gold bars, and gold coins. Some prefer physical gold over other forms because it’s tangible and easy to purchase. You can easily buy a gold necklace at the mall or gold bars at Costco (COST).
Intrigued by Costco’s precious metals offering? Read more here to learn key considerations for precious metals investing, the details of the Costco selection, and tips for managing your new investment.
Physical gold pros and cons
The advantages of physical gold include:
Readily accessible for use: If you keep your physical gold at home, it is easily available to use as a medium of exchange in an economic emergency.
No added volatility or ongoing fees: If you hold the gold yourself, “you eliminate counterparty risk and storage fees or expense ratios,” explained Brett Elliott, director of content and SEO at American Precious Metals Exchange (APMEX)….
Source: finance.yahoo.com
