Gold Prices Rise on Solid Economic Report

Thursday, 17 January 2013
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Published in United States Economy
The price of gold shot up some today, as reports from U.S. economic indicators reported steady improvement in the housing and labor markets. The yellow metal had dropped a small 40 cents yesterday, but the price of gold shot back up a little over $4 today.

Fiscal-Cliff

Gold for February delivery was up by $4.30 to $1,687.50 an ounce at the Comex division of the New York Mercantile Exchange. Gold price traded as high as $1,689.70 and as low as $1,666.40 an ounce, while the spot price of the yellow metal added $8.10. Gold remains over that $1,650 price barrier, which is good for investors and traders to see.

Obviously when good job numbers and housing numbers are reported gold usually goes up. This was the case today, as good news from the U.S. economy equaled good news for the price of gold.

"Principally today, anyway, the better economic reports that came out of the U.S. helping the dollar, pushing down gold a little bit," said Will Rhind, managing director at ETF Securities U.S. "We've come off that low as people have stepped in to buy it."

Gold has recently (especially in the new year) struggled to get any sort of footing to make a run at higher price numbers. This is a result of a combination of things including the fiscal cliff, China, the Euro zone and the Fed reports regarding the monetary policy in America and what the future of it may be like.

"Gold is a pure commodity. It doesn't offer a dividend, there's no earnings associated with it, and so it is really supply and demand driven," said Paul Pagnato, founder of HighTower's Pagnato-Karp Group. "What we're seeing now is the central banks have their act together; they're all coordinated, they're all in line with one another, and the economies are starting to heal."

If all central banks do indeed continue to act together, then this could be the start of great things for the yellow metal. We all know and have heard that 2013 is suppose to be a banner year for gold as far as new price highs and demand are concerned.

If gold is going to make a run at the $2,000 per ounce price mark, or at least come close to it, then a number of things are going to have to come together as one to make it happen. Things are starting to head that way, but there is more work to be done.
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Jeremy Holcombe

Jeremy is a seasoned finance writer who has been studying the gold and silver industry for many years. His vast knowledge in the precious metals sector led him to Goldco Direct, where he is now one of their most recognized writers both on the site and around the web. Along with being a senior Precious Metals writer for Goldco Direct, he is frequently featured on many financial sites on the internet where they tap into his knowledge about gold. Jeremy is passionate about educating investors about the yellow metal as its price continues to rise to record breaking levels.