Gold fought its way to over $1260 an ounce on Tuesday and was able to hold its ground as it closed over the $1260 level for the first time in two weeks, gaining momentum and finding support north of $1250. A flat stock market contributed to gold’s shine as investors edged towards the yellow metal ahead of key economic data coming out later this week.
Gold’s rise of over $6 an ounce was a welcome sight for precious metals investors who have experienced a lackluster two weeks of trading prior to the move. Silver was able to move higher as well, ending the session at $19.17 as it appears to have found support over the key $19.00 level. Gold, however, was the story of the day as it managed to close at its highest level since late May.
The rise in gold prices was spurred in part by inflationary pressures overseas and a U.S. equity market that seems unsure of itself as the Dow stands at the threshold of the 17,000 level, with many analysts calling for a market top. The release of any weaker than expected economic data later this week could further the case for gold as investors not only find themselves seeking healthy returns but the return of capital itself. The U.S. jobless claims number due on Thursday should prove to be a benchmark figure, and signs of economic weakness as per the employment number could trigger a run out of equities and into the waiting arms of gold and silver.
With the European Central Bank having cut interest rates last week, the stage is set for gold as U.S. retail sales figures are due on Thursday and the PPI number comes out on Friday. Precious metals investors could be in for a welcome surprise if those numbers conflict with a stock market that might have risen too far and too fast for its own good.
How to invest in gold and silver
With the prices working toward a continued gain, now is the time to invest in gold and silver. There are several ways to accomplish this, depending on your investment strategies. You can hold gold and silver as hard assets to protect your savings better than any savings account could. You can also create a precious metals IRA that will allow you to benefit from the many tax benefits that IRAs provide. Another profitable option for investing in gold and silver is through the acquisition and holding of rare coins. Rare coins are a very popular treasure asset that both protects your wealth and allows you to display your wealth in a beautiful and interesting way.
To help you better understand your options in investing in precious metals like gold and silver, we are offering a free Investors Guide to Rare Coins and Precious Metals. Inside, you will find more in depth information including: The Difference Between Bullion and Numismatic Coins, Advantages of Investing in Numismatic Coins, Advantages of Investing in Bullion Coins, Information on Precious Metals IRAs, a List of Coins that Qualify for IRAs and an extensive FAQ.
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