Gold price- an indicator of economic confidence
11th November: Gold price is largely emerging to be a top indicator of economic confidence in the US economy.
Interest in gold prices indicates level of consumer of confidence–There is a direct relationship between the number of queries with regard to prices of gold on the Google search engine and the consumer confidence levels, states Senior Investment Analyst with Manulife Asset Management, Edward Ritchie. Inquiries regarding gold prices have been strongest in nations like UAE (United Arab Emirates), India, Singapore, Hong Kong and Malaysia.
Search for gold prices reflects the trend of demand for gold investment among the people. Prices of gold have zoomed past all previous records due to growing uncertainties in global markets coupled with volatile stock market and slower development rates of developed economies.
And gold has emerged to be a safe bet for investment for investors the world over. People are reposing their faith in this investment option while leaving aside all other investments.
Potential for gold investment undervalued--However, the vast hidden potential for investment in gold is still undervalued keeping in view the growing interest and demand for searching gold prices as indicated by the Google search engine. According to Mining Leader for the Americas, John Gravelle, majority of leading gold mining firms are facing challenges in making investments.
And in such a scenario, they are allowing certain small-scale companies do investments in gold mining and acquire them later.
Gold prices have gone somewhat week as compared to the peak touched during last few days. And the reason could be attributed to the looming Euro debt crisis putting due to increased concerns of piling borrowing costs in Italy along with Greek insolvency.
Taking a cue from such volatility, many speculators, institutional investors and traders are considering it optimum to sell their gold investments. And this has led to a marginal decline in the gold prices. It’s not just gold, even silver has lost 1.2 percent by going down to $33.67