{"id":24693,"date":"2012-04-13T01:09:00","date_gmt":"2012-04-13T01:09:00","guid":{"rendered":"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/gold-prices-rebound-as-u-s-job-market-deteriorates\/24680\/"},"modified":"2012-04-13T01:09:00","modified_gmt":"2012-04-13T01:09:00","slug":"gold-prices-rebound-as-u-s-job-market-deteriorates","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gold-prices-rebound-as-u-s-job-market-deteriorates\/24693\/","title":{"rendered":"Gold Prices Rebound as U.S. Job Market Deteriorates"},"content":{"rendered":"<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - News Links *\/\ngoogle_ad_slot = \"3490797620\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<p><!--Ad Injection mfunc mode ad include code--><!--mfunc include_once('\/mnt\/Target01\/327806\/www.thestockmarketwatch.com\/web\/content\/stock-market-news\/wp-content\/plugins\/ad-injection\/adshow.php') --><!--\/mfunc--><\/p>\n<p><a href=\"https:\/\/thestockmarketwatch.com\/metal\/gold-price.aspx\">Gold prices<\/a> rallied on Thursday\u2014a biggest weekly gain in previous six weeks as weak dollar mainly due to downbeat U.S. weekly jobless data, pushed up the metal prices.<\/p>\n<p><span id=\"more-24693\"><\/span><\/p>\n<p>On Thursday, the U.S. labor department reported that first time weekly unemployment claims have reached to highest level since January during the last week. The data has raised the concerns that job market was stalling, challenging the strength of the economic recovery.<\/p>\n<p><!--Ad Injection mfunc mode ad code--><!--mfunc adshow_display_ad_file_v2(array('ad_random_1.txt'), array(100), array('align' => 'float right', 'clear' => '', 'margin_top' => '', 'margin_bottom' => '', 'padding_top' => '', 'padding_bottom' => ''), array(), array()) --><\/p>\n<div style=\"float:right;margin-left:5px;\"><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - in News 300 *\/\ngoogle_ad_slot = \"5684630733\";\ngoogle_ad_width = 300;\ngoogle_ad_height = 250;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/div>\n<p><!--\/mfunc--><\/p>\n<p>Last week, the U.S. labor department had reported that only 120,000 non farms jobs were created against the estimated 203,000.<\/p>\n<p>While <a href=\"https:\/\/thestockmarketwatch.com\/metal\/gold-price.aspx\">Spot gold<\/a>\u00a0edged up $15.76 to settle $1,673.21 an ounce, which will be a weekly gain of 2.0 percent, U.S. <a href=\"https:\/\/thestockmarketwatch.com\/metal\/gold-price.aspx\">gold<\/a> <a href=\"https:\/\/thestockmarketwatch.com\/markets\/commodities\/today.aspx\">futures<\/a> climbed up $14.60 to close at $1,674.90.<\/p>\n<p>Euro-zones woes and <a href=\"https:\/\/thestockmarketwatch.com\/metal\/gold-price.aspx\">gold<\/a>\u2019s upsurge<\/p>\n<p>After Greece, it\u2019s Spain struggling to find answers to its economic woes as country\u2019s bond yield jumped by nearly 6%, a level which is perceived as unsustainable by Madrid to service its debt. The current rise in Spanish bond yields comes after head of the Spain\u2019s central bank warned that country\u2019s commercial banks will require more capital, should the economy deteriorates any further.<\/p>\n<p>Reacting to latest developments, the equity market in Spain plunged to three month low. In the meantime, holdings of <a href=\"https:\/\/stockmarketwatch.com\/metal\/gold-price.aspx\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">gold<\/a> in exchange-traded funds, often perceived as a measure of longer-term investment appetite for bullion, held near record highs about 70.3 million ounces.<\/p>\n<p>Gold in the recent past is tracking dollar rather than acting as a safe haven instrument.<\/p>\n<p>For instance, gold\u2019s correlation with euro has strengthened further, since the start of the year. This means that bullion\u2019s sensitivity to movements in the euro is far higher than it was a month ago. This is the reason why <a href=\"https:\/\/thestockmarketwatch.com\/metal\/gold-price.aspx\">gold prices<\/a> increased as the euro showed some modest strength, after concerns over Spain\u2019s bond auction and debt problem was eased somewhat following ECB\u2019s board member\u2019s Benoit Coeure\u2019s comment that the central bank might go ahead with its bond buying program.<\/p>\n<p>On the other hand, gold\u2019s correlation with the dollar has fallen to its most negative since the start of the year, around -65 percent- which means that gold is more likely to move inversely to the greenback than it was a month ago, when this correlation was at -40 percent.<\/p>\n<p>Commenting on latest upsurge in gold prices, \u00a0Andrey Kryuchenkov, Capital analyst at VTB said to CNBC, \u201cIt&#8217;s good that gold has bounced back up. I don&#8217;t expected sustained losses, but neither do I expect sustained gains, because tomorrow you have Chinese GDP data but you also have U.S. inflation and that is going to be closely watched\u201d.<\/p>\n<p>According to Peter Tse, director at ScotiaMocatta in Hong Kong, &#8220;The comment (ECB) has stabilized the stock market and euro, but the prospect in the euro zone still looks grim with yields in Spain and Italy trading at relatively high levels\u201d.<\/p>\n<p>On the U.S. economic front, market participants are expecting the Fed to ease its monetary policy as U.S. job market continues to deteriorate. On Thursday, couple of officials from the Federal Reserve hinted support for an accommodative monetary policy, saying the weak U.S. economic recovery still merited more interventions from the central bank.<\/p>\n<p>While Federal Reserve Vice Chairman Janet Yellen commented late Wednesday that &#8220;further easing actions could be warranted&#8221; if the recovery stalls, Federal Reserve Bank of New York President William Dudley echoed Mr. Yellen feeling by saying that it was too soon to say the U.S. economy was out of the woods.<\/p>\n<p>Gold prices can benefit from the central bank\u2019s easy-money policies, as investors seek safer instruments that can shelter them from the potential weakness in the currencies.<\/p>\n<p>In some other precious metal markets, <a href=\"https:\/\/thestockmarketwatch.com\/metal\/silver-price.aspx\">silver<\/a> edged up 3.2% to close at $32.525 a troy ounce. Spot palladium\u00a0also climbed up 1.91 percent to $644.55 an ounce, after losing 0.6 percent in the previous session.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>More Posts by this author<\/p>\n<ul>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/jp-morgans-q1-earnings-beat-estimates-jpm\/24788\"><br \/>\nJP Morgan\u2019s Q1 Earnings Beat Estimates (JPM)<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-updates\/stocks-end-lower-for-the-week-2\/24786\"><br \/>\nStocks End Lower for the Week<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/coinstar-shares-rally-cstr\/24771\"><br \/>\nCoinstar Shares Rally (CSTR)<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/gold-prices-fall-2\/24769\"><br \/>\nGold Prices Fall<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-updates\/stocks-end-sharply-lower-on-china-growth-worries-euro-zone-debt-crisis\/24767\"><br \/>\nStocks End Sharply Lower on China Growth Worries, Euro Zone Debt Crisis<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/gold-and-silver-prices-fall-sharply\/24742\"><br \/>\nGold and Silver Prices Fall Sharply<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-updates\/stocks-headed-for-a-lower-finish-27\/24738\"><br \/>\nStocks Headed for a Lower Finish<\/a><\/li>\n<\/ul>\n<hr>\n<table style=\"border:none;margin:0;\">\n<tr>\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/wp-content\/uploads\/2024\/08\/5.jpg\" alt=\"edliston\" width=\"125\" height=\"125\" class=\"photo\"><\/td>\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<div style=\"font-size:11pt;\"><b>Post Written By: Ed Liston <\/b><\/div>\n<div style=\"font-size:10pt;\">\n<p>Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.\n<\/p><\/div>\n<\/td>\n<\/tr>\n<\/table>\n<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"pub-1408583772585547\";\n\/* 336x280, created 7\/9\/11 *\/\ngoogle_ad_slot = \"3552319058\";\ngoogle_ad_width = 336;\ngoogle_ad_height = 280;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<div style=\"margin:5px;margin-bottom:20px;font-size:11pt;\">&laquo; <a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/\">Return to Stock Market News<\/a> &laquo; <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Gold prices rallied on Thursday\u2014a biggest weekly gain in previous six weeks as weak dollar mainly due to downbeat U.S. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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