Gold hits 7-week high on more weak jobs data

Gold closed Monday at a seven-week high of $1,218.60/oz., a 1.5% gain, after more disappointing jobs data eased gold investors’ worries over the Fed raising interest rates.

The U.S. employment data, which was released on Friday, showed far fewer jobs were produced in March than expected. In addition, the Institute for Supply Management on Monday reported its non-manufacturing index fell to 56.5% in March from 56.9% in February, indicating slower growth in the service sector. These data led investors to believe the Fed will be in no hurry to raise interest rates, as Fed Chair Janet Yellen has stated the timing of an interest rate hike would depend on improvement in the labor market.

The previous week also brought disappointing jobs data from the ADP Research Institute, which led gold to make its biggest jump in two months.

Kira Brecht wrote on Kitco that a major turning point for gold could be on the horizon:

“With concerns about the amount of gold reserves, expectations for huge Asian demand around the corner and a U.S. stock market that is vulnerable for a turn, gold could be looking relatively cheap now compared to what could lie ahead.”

In other words, gold might not sustain these relatively low prices for much longer. Why not own gold at these levels to protect your finances from a stock market crash? American Bullion can help you own gold for the very first time. It’s fast and safe. Call 1-800-326-9598 to speak with a precious metals specialist, or request your Free Gold Guide.

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