Gold News

Market worries take no shine off gold

Stock market investors will be holding their breath today to see which way volatile prices swing, but gold traders will hope to build on last week's successful performance.

On Friday gold closed above the $700 dollar mark, remaining there in this morning's European trade (September 10th), suggesting the re-emergence of gold as a safe-haven investment at a bad time for other trade.

Worries about a fall in liquidity as US housing market problems impact into overall investments were compounded this weekend by indications that problems are now hitting overall economic growth and employment.

Friday saw a sell-off in many stocks on the back of what was seen as a surprisingly weak payroll report for August. The news was broken by the government on Friday, amounting to a drop of 4,000 jobs in US non-farm payrolls.

Constituting the worst monthly results for four years, there are concerns that growth is being hit, upping the demands by many for a cut in the federal funds rate at the upcoming September 18th meeting.

While gold investors will be watching developments closely, they will rest assured that the price of the precious metal surged through the $700 barrier amid Friday's turmoil, reacting to a weakening dollar and showing its continued attraction as safe-haven investment for many.


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