Gold Investors Bank on Lousy Economic Data
The safe-haven theory for gold (NYSE:GLD) investment continues to validate itself as today investors flocked back to the precious yellow metal following the release of the labor dept.’s ugly non-farm payrolls report. The run sent gold futures up $11 an ounce today, capping the week off at a 4% gain for gold, which closed at $1,541.60 an ounce. Gold futures haven’t closed at a level this high since June 22, making it the highest % weekly gain for the metal since Nov. of 2009.
Brien Lundin commented, “Gold is benefiting from the dismal job numbers, and fears/hopes that the [Federal Reserve] will be forced to crank the money pumps open once again,” with Keith Springer, president of Springer Financial Advisors adding, “Investors know governments will now need to continue the stimulus programs and keep printing money. They know they can’t and won’t throw in the towel yet and let the economy sink back into recession. Some investors are also buying gold as a hedge against Armageddon.”
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Other metals, aside from Silver (NYSE:SLV) which ended the day up a penny at $36.54/ounce, did not fare as well in trades. Copper futures ended the day with losses of .88%, while futures for Palladium (-.90%) and Platinum (-.22%) also sank, closing at $778.95 and $1,733.40 per ounce respectively.