Beware of 'Momo' Crowd, Don't Rush Into Gold Just Yet - Analyst

KITCO NEWS - After the U.S. airstrikes in Syria, the momentum crowd, or 'momo' crowd as dubbed by Nigam Arora of The Arora Report, has been "foolish" to flock to gold. Seen as a safe-haven, gold is viewed as an asset that cannot be manipulated by the interest rate policies of any one government, and has traditionally been used as a hedge against inflation. Arora explained that the 'momo' crowd was buying at $1,270 and was selling at $1,253. 'Buying at $1270 was foolish because the Syria strike is likely not to be followed with more strikes in the near future,' he said. 'Professionals know this but mom and pop often do not understand that very long-term investing has positive expectancy irrespective of how good you are at investing. On the flip side, short-term trading is a zero sum game; someone wins at the expense of someone else,' Arora said in his latest commentary. On Tuesday, spot gold rallied over 1% to hit $1,273.00 an ounce, breaking through the five-month high it reached last week.

This article was written by a staff member of TheStreet.