Certified Gold Market Stable on Weak Jobs Report Posted by James Randolph on June 04, 2010
Certified Gold Market Stable on Weak Jobs Report
June 4, 2010 – Certified gold market prices remain relatively unchanged after weaker than expected U.S. employment data showed fewer workers were hired in May than forecast. Support in gold prices is in part due to increased fears the continuing bank and credit problems in Europe may be spreading to countries outside the European Union.
US stocks are sharply down this morning on both the employment data and rumors of more debt trouble in Europe. A corresponding firming in gold prices shows the flight to safety in gold. Analyst Wu Zheng, from China-based Soochow Futures Co. stated, “The market knows the Europe debt crisis isn’t going away anytime soon, so gold’s safe-haven status is going to keep prices supported.”
Zheng added, “After the very quick ascent to nearly $1,250, and without signs of the situation worsening, gold will probably consolidate around current levels.” If the situation in Europe worsens, the certified gold market could see significant buying pressure as its status as a safe harbor continues.
Overall, this week saw a mild drop in the certified gold market. Senior vice president, Afshin Nabavi, of MKS Finance SA in Geneva said, “Gold was pretty much on a one-way street, and it is only natural that we see a bit of a correction.” His opinion is, “In the medium to long term, this may be an opportunity to buy into dips.”
Mid-day Friday, gold prices hovered near the psychologically important 1200 level. Technically, prices remain in a solid uptrend with downside support recently seen in the 1160-80 range. Moderate upside resistance was experienced at the 1230 level earlier this week
Senior Staff Writer – Certified Gold Exchange