Gold preserves the gains as investor demand the metal for its store of value
The dilemma for traders in precious metals continues to be the same! Investors saw gold surge alongside the dollar as the problems across the global economy intensified and the European debt crisis eroded the appeal of all foreign currencies; nonetheless, as uncertainty now shifted the United States economic outlook, the dollar is losing grounds yet gold still managed to regain its inverse relationship with the metal and still insures its perfect store of value against all odds.
Last week, gold continued its bullishness as the dollar depreciated further, especially as the US jobs reports was abysmal and intensified the fears over the pace of the recovery and growing chances of an economic relapse. More jobs were lost while unemployment remained steady at its elevated level at 9.5%.
Gold last Friday was affected by the negativity of the jobs report to end higher by 0.9% at 1205.70. Silver also advanced 0.65% affected by the dollar's depreciation to settle at 18.46. Platinum was the least fortunate as it was affected by its growth related nature yet still ended marginally higher by 0.13% at 1571.00.
Today the markets in Asia fluctuated as investors were mixed regarding the state of the US economy and the outlook for global growth; especially that the better than expected consumer credit numbers last week eased the fears over growth as American borrow to finance spending. Nikkei ended lower by 0.72% as Goldman Sachs downgraded the US and Japanese growth expectations which came alongside weak trade figures.
Mixed performance in the Asian session today led investors further into the safety of gold; the metal was trading higher as of 02:25 EST by 0.19% at 1208.00 while silver advanced 0.38% to trade around 18.53. Platinum again was shunned and traded lower by 0.83% as investors fears over the outlook depressed the appeal of the industrial metal.