Bad GDP Good as Gold
Sally Turner | Jan 30, 2012 5:00pm EST | 1min:45sec
Gold prices slipped a bit today ... but not very much. The day's decline was mostly because the euro fell against the dollar. Whenever that happens ... it has the effect of making gold more expensive for people who use non-U.S. currencies. The upshot ... naturally ... is less demand for gold and therefore some price weakness.
So why did the euro lose value today? It was because investors got nervous that Greece may default on its debts. Those concerns caused the euro to fall about one percent from its six-week highs against the dollar. Those concerns also cut down the value of European stocks.
Besides the euro ... gold prices also struggled as investors took profits from recent gains. So far this year ... gold has gained more than 10 percent.
On the other hand ... gold prices got some support from exchange-traded funds. The amount of gold being held by those funds is on the rise. Last week the total amount in gold ETFs rose by almost 200,000 ounces ... their highest level since late last month.
