Gold Powers to a 7-Week High of $1,234.55 per Ounce

Posted Aug 19th 2010 2:20PM by Connie Madon
Filed under: Market Matters, Money and Finance Today, Economic Data, Commodities, Headline News, Currency

A combination of factors is driving gold prices today. First off, Reuters reported that initial jobless claims unexpectedly rose to 500,000, when analysts expected only 476,000. This took the stock market into a dive with the Dow down almost 100 points.

Investors looking at the weak economic news and a falling market ran in droves to US treasuries and gold for protection.
Spot gold traded at $1,233.30 October futures are at $1,235.50 per ounce, up $5.40,

The September futures on the 30 year US treasury bond is up 114 basis points to 134.23 (11:00 a.m. EDT)

The run to treasuries and gold is indicative of the fear investors have about the economy. They are exiting stocks for safe haven investments.

The US dollar has been weaker over the past few weeks, also an indication of trouble in the US economy. Generally,
a country's currency follows its economic strength or weakness.

Would you buy gold or gold stocks now?

Tags: gold, Gold jumps to a 7 month high, inthenews