Sources close to “HCS Worldwide” say that gold stood virtually alone in the commodities complex as news of the rejection of the bailout package in Congress spread throughout markets.
As the Dow Jones Industrial Average plunged by nearly 800 points, gold prices rose sharply before settling back to technical support levels.
Demand for gold bullion from the investment community continues to grow as part of a broad-based flight to quality according to the “HCS Worldwide” sources. The result of the vote saw yields on US Treasury bonds drift lower as investors sought shelter from tumbling stock prices.
“HCS Worldwide” say that further evidence that gold has shed its price correlation with crude oil in recent weeks was provided when oil plunged by as much as $10 spurred by demand-destruction fears.
Gold may see further inflows of capital as markets digest the implications of the vote in the coming days according to the “HCS Worldwide” sources.
