Gold prices reach record. Buy on pullbacks.
Gold prices surged to a record $1,657 per ounce Tuesday, while oil slid lower. A commodities analyst points to how investors can take advantage of oil, gold prices.
Gold rings are displayed for customers at a jewellery shop in Seoul Aug. 2, 2011. Gold prices edged higher to a new record, supported by a purchase of 25 tonnes of the precious metal by South Korea's central bank, while investors watched the outcome of a vote on the US debt deal.
Truth Leem/Reuters
With oil sliding lower and gold marching higher how should you position now? Find out from David Greenberg, president of Sterling Commodities.
Crude Oil
Concerns about demand for petroleum products sent the price of crude oil lower after new data again called the recovery into question.
The latest in a string of negative economic data points showed consumer spending dropped in June for the first time in nearly two years and incomes barely rose.
And earlier in the week manufacturing data not only from the United States, but also Europe and China disappointed investors and suggested the global growth engine was shifting into a much lower gear.
But despite the negative catalysts, top strategist David Greenberg, president of Sterling Commodities, doesn’t expect oil to sell-off significantly. Like so many other pros he too, tells the desk “Crude will bounce between $90 - $100. “
Gold
Meanwhile gold surged to all-time highs on Tuesday as investors poured into the precious metal as a safe haven trade not only due to worries about global growth but also the lingering possibility that S&P could downgrade America’s credit rating.
Even with gold flirting with all time highs, David Greenberg tells us, it’s not too late to get in. “In the long-term gold should be a good play. A pullback in gold is a buying opportunity.”