Gold Breaks $1,400 on Jobs Numbers, China, and Europe
The strong gold bull market of 2010 resumed today with gold rising above $1,400
The spot price for
gold was $1,413 as of 4:00 p.m. eastern time. Gold hit all time highs in
November then backed off as the dollar gained strength primarily due to
weakness in the euro. Today gold retraced back to over $1,400 on labor
department numbers showing anemic job creation and the revelation of
China's gold import numbers.The Labor department announced employers added only 39,000 jobs in November, far below analyst expectations and the strong gains of 172,000 in October. The overall unemployment number crept closer to 10% as it rose to 9.8% after months of holding at 9.6%.
Gold and other commodities priced in dollars have a tendency to rise in value when the U.S. dollar falls relative to other currencies. Many investors also consider it a “safe asset” to hold when there's uncertainty in the stock market or the dollar, or both.
Another factor helping to prop up gold prices today is the revelation that China purchased five times as much gold in 2010 as it had in 2009 and shows no signs of slowing down. Previously a closely guarded secret, the amount of gold purchased by the Chinese has confirmed the suspicions long forwarded by many commodities experts.
China's state-run Xinhua news agency reported that 209.7 metric tons of gold were imported by China from January through October of this year, representing a fivefold increase of the year ago period. Previously most analysts had no idea exactly how much gold was imported into China.
Many analysts are calling for gold to climb to $1,445 in the near term and Wyatt Investment Research's Ian Wyatt remains confident it should hit $1,500 by the end of this year. This would set the stage for the next leg up to $2,000.
"Between this new revelation about China's gold consumption, ongoing problems with European sovereign debt, and downward pressures on the U.S. dollar, gold prices are reacting positively. This is a great time to be a gold and gold stock investor. Any investor who thinks he's ;missed the boat' on this gold rush needs to seriously consider gold and gold stocks as a vital component to a profitable portfolio," Wyatt recently said.
He's also recently released new, proprietary research on a gold stock paying a whopping 8.9% dividend. This stock has doubled this year and analysis indicates that it's set to double again in 2011.
If you're interested in a solid, consistent 8.9% dividend from an outstanding gold stock you can request your copy of the report. CLICK HERE.
