Gold is doing well compared to other precious metals
Economic data released on Friday asserted investors that the U.S labor market is on path to recovery, though this recovery seems to be slower than anticipated. Although unemployment declined to 9.7%, non-farm payrolls only rose by 431 thousand which was a disappointment considering that the private sector only added 41 thousand jobs.
American stocks dropped heavily on Friday as the Dow Jones fell by 3.15%, while precious metals claiming widespread profit as investors sought to compensate the losses they had incurred in the stock and commodities markets. Oil had also dropped heavily on Friday, declining from 75.00 to 70.00 and is still on the southern course today while trading near the 69.00 threshold.
Asian stocks today were under fierce downward pressure, as Nikkei descended 3.84% while other main indices are reflecting the same situation. The European debt crisis is falling to new depths every week, while it was Hungary's turn this time to announce its deficit concerns, preceded by Italy, Spain, Portugal and of course Greece.
Though falling stock and commodity indices did push investors to gold investments, the yellow metal managed to gain on large safe-haven demand from the depreciating euro. The single European currency has slumped below the 1.20 threshold and is currently trading at 1.1874, while the bullish attack on gold to cover the euro drop has prompted the metal to reach a new record of 1013.30 euros per ounce.
On Friday, gold ascended by 1.01% in New York trading and closed at 1220.00, while in the London fix it closed at 1203.50. Gold withstood dropping oil, rising dollar and massive profit taking, being able to appreciate regardless of these factors. Silver and platinum, however, were not that lucky as silver lost 3.01% and fell to 17.41, while platinum declined 2.07% to 1511.00.
We expect consumption demand to remain weak due to silver's and platinum's decline, while silver's huge plunge was also caused by speculation. Today both metals have pursued their downward course, as at 2:30am EST platinum is trading at 1499.00 down by 0.79%, while silver has fallen 0.17% to a current 17.38.
Although the yellow metal descended today, the drop was relatively mild at a mere 0.31%. Also, if we take Friday's gains into account we will still be able to see the bullish course gold is taking. The uptrend is expected to last into the neat future though intraday trading will be turbulent due to unrest on the global economic stage. Investors are heading for the golden safe haven to protect themselves from the falling euro, while demand for gold is also for an alternative investment due to falling stock indices around the world.