Cry havoc and let slip the dogs of inflation!
Many traders immediately think of precious metals like gold (GLD, quote)when hedging inflation.
Commodites
Looking For Pearls Of Wisdom In Trading And Investing
Regardless of what asset you are using to build a portfolio or trade having a clear idea of its risks and rewards are very important. However, understanding yourself is even more paramount.
Physical – Paper – Digital
In the past investors were limited in choices between paper assets like stocks , bonds and trust deeds, and physical assets. Physical assets were all forms of commodities (DBC, quote) , real estate, precious metals, agricultural, energies etc , along of course their labor.
Gold Remains Heavily Bearish On The Daily Chart
Gold futures sold off sharply once again yesterday, with the precious metal plunging through the $1300 per ounce level, to close the trading session for the December contract with a wide spread down candle shedding $14 per ounce on the day.
Commodities (oil) reflect the global tensions
In any escalation of political tension oil and gold are the two key commodities to watch. For oil the breakout and surge higher was largely driven by events in Iraq coupled with supply issues at Cushing, both of which combined to help power the WTI crude oil (USO, quote) contract up to the $107 per barrel price point as evidenced by last Thursday’s wide spread up candle.
Is Gold a Buy Here? (IAU)
Gold is roughly flat on day going into the July 4th weekend, tomorrow will be light volume with only a half day of trading. The SPDR Gold Trust (GLD, [stock GLD]) ETF is lower by 0.14% in the final hour of trading today while the iShares Gold Trust (IAU, [stock IAU]) ETF is holding flat on the day.
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