|Gold Posts Best Week In Nearly Three Years |
Los Angeles CA, (Tangible Investments) - by James O'Dell - The Gold price rallied $13.80 or 1.19 percent on Friday to post the yellow metal's biggest weekly gains since July 2013 and close at $1,174.40 an ounce. The price of Silver rose $0.18 or 1.21 percent on Friday to close at $15.06 an ounce, while theGold/Silver ratio inched down to 77.98.
The week began with the U.S. Mint reporting sales of American Eagle Gold bullion coins in January totaling 124,000 ounces, which is 53 percent higher than a year ago. “The Australian Mint likewise reported a substantial plus in Gold coin sales in January to 47,800 ounces,” said Commerzbank. The U.S. Mint alsoreports that a robust 5.95 million ounces of American Eagle Silver coins were also sold last month, up 7.7 percent from January 2015.
"In the near term Gold is finding some support in the dovish tone from central banks last week, notably the Fed and the Bank of Japan," said Jens Pedersen, of Danske Bank. With interest rates near zero, the "only option is to move either towards zero or negative rates as the Japanese and selected Europeancountries are already doing in a desperate attempt to force banks to lend", said Edward Meir of INTL FCStone. "Whatever the case, this should beconstructive for Gold."
Crude oil prices remained near multi-year lows mid-week, as European shares retreated and the dollar edged down 0.2 percent against a basket of major currencies. The dollar tumbled after New York Fed President, William Dudley, said that tightening financial conditions and weakening global prospects couldhave "significant consequences" for the U.S. economy.
Dudley's remarks added to market speculation that it is unlikely the Fed will be raising interest rates in March. "The assessment of Fed policy has changed quite dramatically," said Peter Fertig, a consultant for Quantitative Commodity Research.
Analysts expect crude oil to remain weak and that is interpreted as a sign of sluggish global economic activity, which hurts equities. “This along with geopolitical stresses for producers associated with low oil prices is likely to keep buoying Gold,” said HSBC.
The jobs report was released on Friday, and according to the latest data from the Bureau of Labor Statistics, there were 151,000 jobs created in January, down sharply from December’s 292,000, and well below expectations of 192,000 jobs. The weaker than expected jobs data could extend the current rally inGold.
Preserve your wealth and secure your retirement by making a tangible investment in physical Gold and Silver in 2016. Call Toll Free 1.800.741.5014 and allow the friendly staff at Tangible Investments owned and operated by world-renowned coin expert Silvano DiGenova, to assist you in your next purchase or sale.Click here to check out our eBay store.
You may also want to allow one our Gold IRA specialists to construct for you a precious metals IRA tailored to your specific needs. We hope you will share our site with your friends on Twitter and Facebook. Tangible Investments remains the leading buyer of rare objects including: Gold and Silver coins, art,antiques, diamonds, sterling and flatware. We also loan against anything of value and offer more money at half the loan cost, come in or call 1.800.741.5014now for a free quote.