GOLD PRICE NEWS – The gold price climbed $10.20 to $1,657.85 per ounce Friday morning, holding firm despite a stronger than expected jobs report in the United States. The Labor Department reported a gain of 117,000 nonfarm payrolls versus an estimate of 85,000 according to a Bloomberg survey of economists. The unemployment rate fell 0.1% to 9.1%. The weak jobs picture has been a key area of focus for the U.S. Federal Reserve. Tepid jobs data, notwithstanding this stronger than anticipated report, has been a key driver of rising speculation that Chairman Bernanke may be preparing for a third round of quantitative easing. Gold prices are advancing as traders and investors add to positions in the yellow metal via physical gold, gold futures, and exchange-traded funds backed by gold bullion.
The gold price reached another new all-time high yesterday morning before turning sharply lower. After touching a new record high of $1,681.70 per ounce, the spot price of gold tumbled over $30 as broad-based liquidation in global markets weighed on the yellow metal. The Global Precious Metals Team at TD Securities noted that “Gold maintained safe haven status for quite some time yesterday and posted a new all time high spot price above $1680.00 but the ferocity of the sell-off in other markets spilled over as the day wore on.” The gold price ultimately settled lower by $14.57 at $1,647.57 per ounce, while the SPDR Gold Trust (GLD) – a proxy for the price of gold – fell 0.5% to $160.63 per share.
Silver’s trajectory mirrored that of the gold price, as the precious metal initially rose as high as $42.29, but finished the day steeply lower, off 7.4% at $38.66 per ounce. Gold and silver equities posted substantial losses as the Philadelphia Gold & Silver Index (XAU) dropped 6.0% to 197.12. Barrick Gold (ABX) and Goldcorp (GG), the world’s two largest mining companies, retreated 5.9% and 6.0%, respectively.