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Gold Breaks $1300 An Ounce On Safe Haven Appeal
Posted February 13th, 2014
TANGIBLE INVESTMENTS - Laguna Beach - The price of gold broke key resistance at the $1,300 an ounce level on Thursday, and remains on the verge of posting its longest rally since 2011. Silver continues to track gold and gained more than one percent to $20.46 an ounce. Signs of an economy that is losing traction has investors seeking safe-haven assets after the Commerce Department reported on Thursday that U.S. retail sales fell 0.4 percent in January, its steepest slide in 10 months. December sales were also revised downward to show a 0.1 percent loss instead of the 0.2 percent gain that was reported.
Retail sales are the driving force of economic growth and account for about one-third of consumer spending. "Today's data unequivocally show that the unusually cold winter weather is weighing on economic activity. Consumer spending has literally frozen," said Harm Bandholz, of UniCredit Research. Additionally, the Labor Department reported that initial claims for unemployment benefits rose 8,000 to 339,000 in the week ended February 8, well above the 330,000 that economists were expecting.
Bad weather is being blamed for the rise in filings last week as well as the weak retail sales. In fact, while it was feared that the debt ceiling fight may cause a government shutdown this week, it appears that the weather has succeeded. Fed Chairwoman Janet Yellen’s scheduled appearance before the Senate Banking Committee was postponed by the weather on Thursday, and the Office of Personnel Management’s website is announcing that government offices in the D.C. area are shuttered due to the winter storm.
Meanwhile, Jim Rickards, author of "Currency Wars: The Making of the Next Global Crisis," says that the economy is so weak the Fed will be forced to halt the tapering of its quantitative easing (QE) program. "The Fed will say the policy is data dependent, which it is," said Rickards on Yahoo. "But the data has been coming in weak, so I would expect a pause by mid-year, probably in June." Yellen would most likely refain from halting the QE tapering in March, at the first meeting she chairs, said Rickards.
It's important to protect your hard earned wealth during these times of economic uncertainty, and at Tangible Investments, it doesn't matter whether you're new to precious metals or a seasoned veteran, you will always be dealing with top industry experts. Take a moment and browse our vast selection of valuable collectibles, then call Toll Free 1.800.741.5014 today and let the helpful staff at Tangible Investments assist you in your next purchase or sale. Have you claimed your FREE COIN yet?
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