Jim Cramer: ‘Like GLD’, ‘Sell, Sell, Sell Barrick’
(Kitco News) - Even though gold is struggling again, Mad Money’s Jim Cramer said that all investors need to have some exposure to the precious metal.
Gold dropped a whopping 1% on Tuesday as Federal Reserve Chair Jerome Powell remained upbeat about the U.S. economy as he spoke before the U.S. Senate Committee on Banking, Housing, and Urban Affairs.
“Powell … suggested the U.S. economy is strong and inflation is tame,” said Kitco’s senior technical analyst Jim Wyckoff. “Powell’s remarks lifted the U.S. dollar index to its daily high,” weighing on gold prices.
In response, August Comex gold futures touched the low of $1,226.40 and then traded around $1,227.90, keeping all of the losses into Wednesday’s Asia market open.
CNBC's Cramer touched on gold in his Monday’s lightning round, saying that he likes the yellow metal.
“I always think people should have some gold. I like … gold, the bullion” he said. “I like GLD [SPDR Gold Shares (AMEX: GLD) — the world's largest gold-backed exchange traded product].”
But, Cramer also noted that “it is really hard to own the stocks,” adding, “Barrick [Barrick Gold Corp (TSX: ABX.TO)]? Sell, sell, sell.”
All eyes were on Powell on Tuesday, with markets still digesting his positive economic outlook.
The Fed chair Powell signaled that the central bank will continue to gradually raise interest rates as it normalizes its monetary policy and reduces its balance sheet.
“The latest data suggest that economic growth in the second quarter was considerably stronger than in the first,” he said. “The solid pace of growth so far this year is based on several factors. Robust job gains, rising after-tax incomes, and optimism among households have lifted consumer spending in recent months.”