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Tuesday, April 13, 2010

Gold Drops on Alcoa (NYSE:AA) Results

Gold and Oil

Gold and other metals headed south today, as the results of Alcoa (NYSE:AA) disappointed; stocks also fell as investors responded to the poor performance of Alcoa, generating concerns the economy isn't anywhere near a sustainable recovery, if it's in a recovery at all.

Long term investors in gold should be too concerned, as this is a temporary blip in the market, as gold fundamentals should remained strong, based on inflation concerns and the sovereign debt crisis in Greece and other parts of the European Union.

Gold has dropped as low as $13.90 today, to $1,149.20, but has regained much of that, rebounding to $1,152.50 as of 1:53 EST.

For commodities, most eyes have been on oil today rather than gold, as losses will accumlate for the fifth straight trading session, as inventory is expected to increase again.

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