Optimism sweeps through markets to stabilize gold above $1122
Signs of almost complete recovery from the world's economies have sent positive impulses throughout the markets, spreading confidence of a rising demand and causing the price of gold to stabilize above the $1122 per ounce level.
Gold was levered by data from the American labor report, which showed an increase of 162 thousand non-farm payrolls. This reading came in contrastto the previous loss of 36 thousand jobs but was later revised to 14 thousand; nonetheless, the latest figure is considered the biggest gain in the labor market since the last three years. Unemployment had remained loyal to the previous reading of 9.7% to meet expectations of a stabilized labor market.
Revival of the American economy is anticipated with the nourishing labor market, as employment is a fundamental factor in personal income, consumption demand and wholesales that in turn play an essential role in the growth of the nation's economy.
Dow Jones increased 0.65% in last Friday's trades, recording October 2008 peaks of $1092.00, as the gain inU.S. stocks on Friday pushed the gold above the $1116.00 mark.
Gold is under the influence of two opposing forces; the first being an upward push by increasing confidence in the markets thatencourages investors to buy basic goods, while the other is a downward pull by the stronger dollar that attracts investors causing them to leave the shiny metal. However, the force is expected to be the dominant for the time being.
S&P GSCI index closed evening trades recording 537.71, while its RJ/CRB counterpart was 276.43.Today gold recorded a peak of $1127.30 and a low of $1190.90 after opening at the $1119.90 level, as it is currently being traded at $1124.36.