Gold Prices Pass $1350

By on February 12, 2011 at 9:39 am

Gold prices have soared in recent years. The price for an ounce of gold topped $1300 by the start of February this year. Fears about an unstable economy and inflation have driven the prices to record highs. Chinese investors have also put their money into the gold market.

Gold prices experienced a rally when the February jobs report came out. Expected gains of 150,000 jobs outside of the farmin industry were not created. The manufacturing and service sectors showed a disappointing 36,000 new jobs created. The private sector may not have created as many jobs as expected, but the pirce of gold topped $1300 due in part to good news on the Employment sector.

Employment, which has hovered over 9% in the United States dropped to 9% in the last quarter of 2010. Although the employment news caused gold to rally on February 4th, it lost half of its gains. By the 6th, it remained at over $1350 an ounce.

The head of the Federal Reserve and the European Bank met late in January, but neither party gave any indication that they might use tighter control measures to restrict the rise of interest rates.

Investors usually use gold as a hedge against inflation and to make sure they have something in their portfolio of real value. Silver and other precious metals are often added for an extra edge of security. Gold rose to record high levels in the late 1970s and early 1980s during a deep recession. The recession that hit in 2008 has lasted longer and been more serious than the recession that took place at the end of the Carter administration. Increased competition and speculation has helped the cost of precious metals to rise. The price of gold has not yet reached a precipice, although analysts expect it to do so sometime in the future.

Share/Bookmark


Finance

  • Sun Life take a Fourth...
  • Sun Life Financial 201...
  • When does an Annuity m...
  • What to consider befor...
  • MetLife Sells Banking ...
  • Gold: A Smart Investme...
  • Central Banks Buying G...