The Motley Fool: Why Gold Is Trailing the Dow Today

After trading near record highs for much of the morning, the stock market has reversed course and pushed lower this afternoon, with the Dow Jones Industrials  down a mere eight points as of 2:55 p.m. EDT. Yet for gold investors who hope that bad news for stocks is good news for precious metals, the day has also been disappointing, as gold prices are also down by a modest $4 per ounce or so to rest just above the $1,325 level. Silver was down about a dime to $19.75 per ounce, while platinum fell $3 to $1,435 and palladium was the biggest loser, falling $15 per ounce to $727.

As ugly as those figures are, base industrial metals have also performed horribly recently, and that's where the Dow has some direct and indirect exposure. Alcoa  has suffered from the bear market in aluminum for years, and today is no different, with the stock down 0.3% on continuing weakness in the global economy and a lack of demand for the durable lightweight metal needed for construction and other industrial needs. Controversial practices regarding aluminum warehouses have also led investors to doubt the transparency of the market, scaring away potential investment.

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