With gold falling hard yesterday when the stock market rose, you’d expect that the yellow metal might rebound when stocks dropped today.Yet, the gains for gold prices were muted, at best, with spot gold finishing up just $3 per ounce, to $1,246. Platinum fell $10 per ounce, to $1,369, and palladium gave back $5, to an even $700 per ounce, extending their gains from recent days.
Still, from a slightly longer-term perspective, investors can’t be too upset about January’s performance. Gold climbed about $50 per ounce for the month, posting its first winning month in five months. One negative factor that’s hurting gold, however, is that weakness in emerging markets is driving investor demand in the U.S. dollar as a safe-haven currency, and dollar strength tends to pressure gold prices. In addition, with the key Chinese market taking its New Year pause, a key driver of physical demand for gold will be temporarily absent from the trading arena.
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