Gold News

Gold Adds 0.9% for the Week on Record Oil & Iran-Israel Threats; US Jobless Rate Rises

From Chris Mullen at

and silver climbed higher in choppy fashion throughout world trade and ended near their session highs of $899.60 and $17.49 respectively on Friday with impressive gains of 2.64% and 1.93% for the session.

A lower Dollar, record high oil, and fears over war with Iran were just a few of the market movers, adding to the ever-present fundamental reasons for the metals to go higher.

For the week Gold closed 0.9% higher after falling as low as $865 per ounce mid-week.

As Friday ended, the Gold Price in Euros rose to about €569 per ounce, platinum gained $76 to $2074.50, and copper gained roughly 7 cents to about $3.62.

and silver equities rose throughout most of trade and ended with about 2% gains despite roughly 3% losses in the major indices.

Not to be outdone by Thursday's record price gain of $5.49, Friday saw crude oil rise over $11 per barrel to set a new record intraday high of $139.12.

While a weaker Dollar certainly helped, the main reason for the record move seemed to be comments from Israel's transport minister that stated an attack on Iranian nuclear sites looked "unavoidable".

Morgan Stanley also came out with a call for oil at $150 by July 4th.

The US Dollar index fell as the European Central Bank commented on plans for a rate hike next month. Poor US economic data – led by a jump in unemployment to 5.5% – raised doubt over whether the Fed will be able to raise interest rates this year.

The BLS net birth/death adjustment added 217,000 payrolls to May's data, but it still gave the biggest one-month increase in unemployment since January 1975.

Prior months payrolls were also revised down slightly.

Treasury bonds rose as the Dow, Nasdaq, and S&P fell substantially and more than erased Thursday's near 2% gains.

Next week's economic highlights include Pending Home Sales on Monday, the Trade Balance on Tuesday, the fed's Beige Book and the Treasury Budget on Wednesday, Export and Import Prices, Initial Jobless Claims, Retail Sales, and Business Inventories on Thursday, and CPI and Michigan Sentiment on Friday.

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Adrian Ash

Adrian Ash, BullionVault Gold News

Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

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