“Profit-takers weighed on the gold price as the metal was one of the few assets Tuesday to yield a positive return. The Dow Jones Industrial Average closed 1.1% lower while gold settled over $12 higher and traders who needed to raise cash closed some gold positions for a profit.” Reports Alex Steel from TheStreet.Com
 
“The tug-of-war between profit-takers and bargain-hunters promises to continue and keep gold prices in a narrow trading range. Gold is expected to retain its appeal as a safe-haven asset as spooked investors search for a protected place to put their money. Although gold doesn’t offer a dividend or a yield, it is a form of money that retains its value.” Reports Alex Steel from TheStreet.Com

The outlook for gold in the long run looks good. Barclays Capital analyst Suki Cooper is stating “We have had some reports that (gold) mine supply is actually doing quite well, and jewelry demand is looking much weaker with the import data from India and Turkey out this week (So) fundamentals look quite weak, but… investment demand still looks supportive. Consolidating around these levels looks likely at the moment, but as long as investment demand looks strong we would expect higher highs throughout the year.”

Holdings of the world’s largest gold-backed exchange-traded fund, New York’s SPDR Gold Trust (GLD), also rose 0.3 tons to a record 1,268.234 tons on Tuesday.

Related posts:

1. Gold ETF Analyst Report: Taking A Look At The SPDR Gold Trust
2. Clive Maund: Gold To Profit From Economic Uncertainty (GLD, GDX, GDXJ, IAU, DZZ, GG, ABX, NEM, FCX)

NYSE:GLD, SGOL