Gold Moves Sharply Higher on Inflation Worries and a Weaker Dollar

Filed under: Major Movement, International Markets, From the Boards, Market Matters, Personal Finance, Commodities, Headline News

For the past four weeks gold has been in to doldrums, hanging around the $1,330 range. Some hedge funds sold out their positions. Analysts were on the tape saying that gold has lost its luster and is ready for a fall.



Now, today, you look at the gold price and it's up. $15.80 at $1,364 per ounce. And you are wondering what's going on. You look at today's news and you read that China has just raised interest rates. So as a trader you decide to sell the gold short because gold does not like higher interest rates. Wrong! The market turned around like a vengeance. By noon it was up $13.00. It wasn't logical, but it happened anyway. The shorts quickly covered their positions.

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Gold Moves Sharply Higher on Inflation Worries and a Weaker Dollar originally appeared on BloggingStocks on Tue, 08 Feb 2011 16:30:00 EST. Please see our terms for use of feeds.

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