Gold prices slipped below $1550 in early morning trading before closing today over $1625. The U.S. jobs report sank stocks across the globe, while gold once again became a safe haven for nervous investors. Gold was up 4% on the day, but up over $75 from morning lows. It had actually begun the day in negative territory.
Is it possible that the weak job growth in the USA will threaten the world economy? When you add this to what is going on in Europe and the Chinese factory production going into neutral, there is cause for concern. “It certainly suggests that perhaps the softness in Europe is either influencing the U.S. or that the U.S. recovery may not be strong enough to overcome the softness in Europe,” said Jack Ablin, Chief Investment Officers at Harris Private Bank in Chicago.
Gold and silver prices and been sinking in the past month because the U.S. Dollar has risen in relation to the European euro. Today’s jobs report could verify what many analysts have already indicated. The U.S. dollar is simply the least wilted rose in the vase. The US Treasuries are paying all time lows and the spread between 5 and 10 year notes is at all-time highs. There are many who feel that gold will become the safe haven status, and today’s rise is just a beginning.
Have a great weekend!
At 5PM EST the APMEX precious metal prices were:
- Gold price – $1,627.10 up $63.40
- Silver price – $28.75 up 91 cents
- Platinum price – $1,447.60 up $28.00
- Palladium price – $613.00 down 90 cents