Gold Prices Rise Following Weak Economic Data
The price of gold continues to rise in the midst of generally weak economic reports.
MarketWatch reports that the price of gold increased $17.70 to settle at $1218.60 per ounce. This increase comes in the shadow of a weak March jobs report, which showed new jobs increased by only 126,000. Gold prices have attracted not only U.S. investors, but Asian investors as well. Kitco reports that Chinese investors are driving the huge Asian demand for gold.
Sales of gold increased from 18,500 ounces in February to 46,500 ounces in March, an increase of 151.4 percent. Metals and mining analyst Eugene King has estimated that remaining gold reserves will end in 20 years, which could further increase both the demand for and price of gold.
The price of gold fluctuates regularly. On January 22, 2015, the price of gold was $1,300 an ounce. Julian Jessop, head of commodities research at Capital Markets, predicts that the price of gold could reach $1,400 an ounce later in 2015.
In an interview with CNN Money, Erica Rannestad, senior analyst at Thomson Reuters, calls investing in gold a “safe haven” and “a hedge against surprises in the market.” Thus, it should come as no surprise that, in the wake of a weak jobs report, gold prices continue to be strong.
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