Gold Falls Back into Investor Favor

15-Apr (CommodityHQ) — Gold was one of the hottest commodities of the 2000’s, as its insatiable bull run was cheered on by commodity investors. But its good fortune finally broke in 2013 as the precious metal declined nearly 30% and fell another 2% in 2014. Now, as the Fed toys with a rate hike in 2015, gold has begun to fall back into favor with investors.

…The second, and more significant, factor playing into gold’s price this year is the Fed’s interest rate decision. It is generally accepted that the market does not want the Fed to raise rates, but it is an inevitability that stocks will eventually have to face. For the time being, many believe that raise will happen later this year at which point some expect markets to correct. A market correction favors gold as investors scurry to the safe haven commodity. And that trend has already shown some signs of life in 2015.

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