Futures Prices Rise At Gold Exchanges Nationwide Posted by James Randolph on March 05, 2010
March 5, 2010 – Gold exchanges were seeing increases in futures prices for April delivery on Friday as the metal rose to as high as $1,140.50 in morning trading, climbing $7.50 per ounce. Reports of a steady unemployment rate as reported by TheStreet, “Increased investors’ risk appetite for commodities, helping gold reverse earlier losses.”
The nonfarm payroll report was released by the Labor Department today, showing a lower than expected increase of 36,000 jobs lost in February. While the news was well received at the gold exchanges, the overall unemployment rate still stands at 9.7%. The unemployment rate has been linked by Fed Chairman Ben Bernanke to the current near-zero interest rates.
Bob Lyon, portfolio manager at Smith & Williamson’s Global Gold & Resources fund says, “Higher real interest rates would dent gold investment demand, since better returns to cash – over and above growth in the cost of living, as opposed to below it as is the case across Europe and the United States right now – would cut gold’s appeal as an inflation hedge.”
"I think gold is starting to march to its own drummer now," says David Morgan, founder of one Internet investment site. "It’s very overbought on a short term basis … [gold might] test the $1,080 level or so … [But] I think that if we can get over [today’s] level and stay there on big volume and stay there three days in a row, [gold exchange prices are] going higher."
Senior Staff Writer – Certified Gold Exchange