Back to top

Real Time Insight

After an impressive 12 year bull-run, gold has been in the bearish territory for the past few months. Gold price has gone down ~7% in the last 13 weeks and ~5% year-to-date.

As a result of decline in investor interest, the most popular gold ETF SPDR Gold Shares (GLD - ETF report) has seen massive outflows recently, while most of the popular US stock funds have gathered assets this year.

Among the main reasons for decline in gold price:

·         Many investors are concerned that QE3 may end earlier than expected

·         US economy and some of the major emerging economies seem to be on the recovery path

·         Some high-profile investors like George Soros reduced their gold holdings 

·         US Dollar has strengthened recently

·         There is no sign of inflation risk in most developed countries despite massive monetary easing

Fed’s chief recently clarified that the Fed has no plans to end easing anytime soon, which resulted in gold price recovering a bit. Further, renewed worried over Europe and the impending sequester should be positive for gold. (Have we seen the bottom in gold ETFs?)

Also, central banks, mainly in the emerging countries have been adding to their gold reserves. According to the latest report from the World Gold Council, central bank purchases were up 17% in 2012 and were at their highest level since 1964.

Despite gold’s disappointing performance of late, I continue to believe that gold should be a part (~5% to 10%) of any well diversified portfolio. Please share your views.

Zacks Releases Their 7 Best Stocks for August, 2014

These 7 were hand-picked from the list of 220 Zacks Rank #1 Strong Buys with earnings estimate revisions that are sweeping upward. Their stock prices are expected to rise sooner than the others.

Today, this Special Report is available to new Zacks.com visitors free of charge.

Close This Panel X

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%