Gold Soars as Dow Dives
Posted by Adam King on May 10, 2010
Gold soars as Dow dives
May 10, 2010 – Gold soared Friday to new record highs as the Dow dived to record lows.
Gold’s closing $1210.40 Friday was:
– the highest so far in 2010
– the highest since December 3, 2009
– the closest to its all-time high of $1226.10 posted in December 2009.
On the other hand, the Dow ended Friday at 10380.43 points, registered a drop of 139.89 points (1.3%) from the previous day. It first plunged by as much as 1,000 points Thursday below the 10,000 mark before recovering to minimize the loss at 348 points. The drop was:
– a 771.40-point decline in just four days, the lowest close since February 26
– the worst percentage decline since March 2009
– the 628.18 points drop for the week was the steepest since the week of 0ctober 6-10 in 2008
– 7.4% below its April 26 closing high
– lower than when the year began for the first time.
News about the situation in other markets was just as discouraging. Nasdaq went down 54 points (2.3%), said to be its lowest in two months. Standard & Poor’s 500-stock index fell 17.27 points (1.5%).
Markets in Europe and Asia tumbled as well. In France, the CAC was down 4.6%, in London the FTSE was down by 2.6% and the German DAX by 4.6%. In Japan, the Nikkei lost 3.1% and in Hong Kong, Hang Seng lost 1%.
Analysts observed that investors again sought out safer investments in nervous response to the erratic stock prices movement. As usual, these investors turned to gold.
Senior Staff Writer – Certified Gold Exchange
US Gold Market