Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Price Spikes Higher as U.S. Jobs Report Disappoints

Commodities / Gold and Silver 2010 Jan 08, 2010 - 11:00 AM GMT

By: LiveCharts

Commodities

Just when it appeared that the gold price was ready to reverse its long-running and fast-paced upward trend, speculators have begun to jump back in. After falling to a 60-day low of $1,080.50, the price of gold reached its highest point in just over a month at the close of New York trade on January 6th.


The spot gold price for one ounce of gold at the New York close on the 6th was $1,138.10. The current rate is $1,130.70. A stall in the positive move for the dollar and some less than exciting news on the economic front have propped gold up again, at least for the short term.

The dollar was picking up steam to close out 2009, but recent housing data was not as impressive as expected. Friday’s (January 8th) jobless claims report is likely to increase gold buying as it shows there is still plenty to accomplish on the economic front. There were an unexpectedly high 85,000 job cuts during December according to the Labor Department report.

Unemployment remained steady at 10 per cent, though many are suggesting that this has as much to do with people leaving the workforce.

The job market is one of the final major hurdles as the economy tries to get back on solid ground. Job cuts show that some companies are still concerned about the cost of doing business and do not yet have complete faith that the economy favors strong profitability.

All of these economic concerns contribute to renewed interest in the “safe money” investment of gold. The gold price typically moves counter to sentiment on the US economy. When investors are confident, they choose more high-risk growth investments like equities. However, the more cautious investor likes gold because it remains one of the safest real money investments.

The gold price climbed nearly $20 in short order after this morning’s job announcement, from a spot rate near $1,119 to just over $1,138 (the largest intraday price in over a month). The emotional buying and momentum have waned since, which as brought the price down to its current level.

The price of gold is not likely to move significantly in either direction for the near future. While some top analysts called for $2,000 gold in mid-December, it is hard to imagine this happening in the near to medium term future if the economy appears to be holding its own. If jobs and other laggards on the economic front demonstrate strong improvement in the coming weeks, a lower gold price is more likely.

Neil Kokemuller

LiveCharts.co.uk

Neil Kokemuller is an Associate Professor of Marketing at Des Moines Area Community College in Des Moines, Iowa, USA. He has a MBA from Iowa State University. He is also in house stock market commentator at Live Charts UK, where you can find real time charts and share prices .

Copyright © 2010 Live Charts

Please note: The information provided in this article is intended for informational and entertainment purposes, and not as advice for financial decisions or investments. Actions taken on the basis of the information shared is at the sole risk and discretion of the individual. Currency investment poses significant risk of loss.

Live Charts Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in