Friday, March 9, 2012

Gold Up Again on Good US Jobs Data, Oil Gains

Oh, and it sounds like resolving that little problem with the Euro and Greece may have helped as well to send gold prices higher.

Or is it just that the US dollar is sinking and it makes it look like Gold is more expensive? Hmmm.

Gold rebounded in heavy trade on Friday, reversing early sharp losses as the metal took heart from gains in crude oil and U.S. equities' after an encouraging U.S. nonfarm payrolls report. Bullion, which has taken to following riskier assets, rose in the face of a dollar rally and diminishing hopes of further monetary stimulus from the Federal Reserve after employment grew strongly for a third straight month.

Analysts said gold prices have already factored in a recovering economy which lessened the need of more monetary easing. Gold notched a 5-percent drop last Wednesday after Fed Chairman Ben Bernanke did not signal more easing was on the way.

Gold turns higher on jobs data, oil gains | Reuters

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Breaking US Dollar Collapse News

What's Behind the Decline of the US Dollar?

This is one the of the best and simplest explanations we have seen:
The U.S. dollar's downward slide is accelerating as low interest rates, inflation concerns and the massive federal budget deficit undermine the currency. - Wall Street Journal, April 23, 2011
Interestingly, the Federal Reserve is responsible for, or an active participant in all three of these factors.