11 May, 2010 @ 03:20 pm ET | written by ecPulse.com
Europe's bailout plan continue to affect global markets, but investors targeted gold as a safe investment throughout today's trading session due to the long-term effect of the bailout plan introduced by E.U. policy makers to the market, which will suppress the Euro over the upcoming period.Accordingly, investors targeted gold and low yielding assets as a safe investment where gold opened today's trading at $1202.77 an ounce, where it managed to reach the highest levels for today at $1231.77 an ounce, and the lowest at $1200.86 an ounce, while trading at $1230.87 an ounce, as of 18:10 GMT.
Investors weighed the impact of the bailout plan that was presented by E.U. and the IMF, which totaled to $1.0 trillion, where more cash in the global economy raises the Money Supply in the economic cycle, not forgetting that the ECB and the BoE continue to hold the benchmark interest rates at historic low records, accordingly, fears from increasing government's outlays will depreciate the value of the currency, and accordingly, making hard assets more valuable.
Most of Europe's stock indices closed on RED, while U.S. stock market slumped at 15:16 EST, where the DJIA dropped by 0.21% to trade at 10762.77, while the S&P 500 index dropped by 0.24% to trade at 1156.98, meanwhile, the NASDAQ Composite index dropped by 0.18% to trade at 2378.92.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment