NEW YORK (AP) – Nothing is going gold’s way.
Inflation remains tame, the dollar looks strong and Americans are increasingly confident. Even fears that the Federal Reserve would set off another financial crisis have faded as the central bank ends its effort to pump money into the economy.
In short, all of the reasons for buying gold over recent years have disappeared, helping to drive prices for the metal to a four-year low.
“I think the big reason gold has lost so much ground is because confidence is coming back,” says Jim Paulsen, chief investment strategist at Wells Capital Management in Minneapolis. Last week, a measure of U.S. consumer confidence reached its highest level in seven years.
“If you’re not as scared anymore, you might be fine putting some money in the stock market,” Paulsen says. “It’s all about fear turning to greed.”