Gold rockets up $14 per ounce on New York NYMEX

Typically, gold moves opposite the dollar, but both climbed in tandem yesterday signaling that the shortened trading week might be more treacherous than most investors might have imagined after the Dow climbed more than 4 percent last week.

Unease in financial markets around the world has pushed investors back into gold and bonds. Indeed, three-year treasury notes for the lowest price on record yesterday, as investors fear another Greece-style banking crisis in Europe.

Precious metals were the beneficiary yesterday with gold adding $14 to its 15 percent gain on the year. Popular gold stocks Hecla Mining Company (NYSE:HL) and Coeur d’Alene Mines Corporation (NYSE:CDE) were both up more than 1 percent on a day when the Dow Jones Industrial Average lost more than 1 percent.

“You saw a little bit of asset allocation shift,” Charles Nedoss, a senior market strategist with Olympus Futures in Chicago, told the Wall Street Journal.

Typically, gold moves opposite the dollar, but both climbed in tandem yesterday signaling that the shortened trading week might be more treacherous than most investors might have imagined after the Dow climbed more than 4 percent last week.

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