Gold touched a historic high above $910 an ounce, due to a general sentiment to buy the metal on further weakness in the dollar and expectations of a cut in U.S. interest rates.Some investors decided to take profits in the afternoon, despite the rally doens't seem to stop. Prices have jumped 50 percent in the past year, and 15 percent in the last 30 days.
Investors collected profits after nearly three sessions of big gains, unwilling to leave money on the table amid ongoing economic uncertainty.
The chart below shows how the market reacted to the FED's rate cut.
It is interesting to note that immediately after the FED's decision, the Dow Jones Industrial index was pushed up by speculative movements. In one hour it had gained 220 points, passing from 12,461 points to 12,681.
Then it firmly pulled back, with traders awaiting key reports on the job market and manufacturing set to arrive on Friday. The Dow, which had been up more than 200 points after the Fed's decision, closed down 0.30%, at 12,442.83.
Investors' concerns about the state of the economy have not let up yet.
There are 2 items tagged with bullish. You can view all our tags in the Tag Cloud
