Excerpt from: World Markets
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| November 09, 2009 | | Spread bets and CFDs on gold prices | Spread betting and contracts for differences on commodities should consider that gold prices have again touched $1,100 an ounce. While they have fallen back to $1,096 for now, gold prices are still reaching for a close above $1,100.
Right now, gold prices are being driven by the fact that risk appetite is sending European stocks higher, and bringing the euro and sterling higher as well. As the U.S. dollar sinks, gold is expected to rise. Also supporting gold prices is the fact that oil is once again making a run at $80 a barrel.
Gold is not only considered a safe haven investment, but it is also thought of as a hedge against inflation. This means that, as economic conditions improve, gold is likely to be turned to in order to protect some investors from the effects of inflation.
| Topic Tags: CFDs, commodities, contracts for differences, European markets, gold prices, oil prices, spread bets, spread betting, U.S. dollar | |
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