, IncFebruary 12, 2010 – Gold prices begin to experience a midday rise today as investors shook off an early decline and the impending three-day weekend in the United States to push gold slightly higher. Gold prices which briefly dipped below $1,080 in overseas trading had rallied and stood at $1,089.40 just before noon, a drop of $5.10 from yesterday’s close. The US Dollar Index was also moving, beginning to see decline over the morning hours as it slipped from a high of 80.75 to 80.40, an overall gain of 0.416.
Both gold and the dollar have been affected by the less than stalwart support from the EU for the sovereign debt crisis in Greece. The EU promised they "will take determined and coordinated action, if needed, to safeguard financial stability in the euro as a whole." While encouraging, the statement gave no information about direct action and left speculators scurrying back to gold and the US dollar for protection.
In addition, the US Labor Department announced that first-time claims for jobless benefits dropped 43,000 to a total of 440,000 for the week; analyst predictions had been for a smaller drop of only 15,000. This news was met with mixed reviews as the reality of continued job losses was tempered by those losses being lower than expected. The US government has been struggling to produce positive economic news in a week where Federal Reserve Chairman Ben Bernanke expressed continue concern about rising inflation and announced potential measures to counteract it.
Following the Chinese, Japanese and American holidays, many analysts are looking for continued upward movement in gold prices as renewed demand, risk appetite and positive fundamentals suggest a rally. Investors who are liquid should consider buying new positions prior to any rise in prices.
Ronald Stevens
Senior Staff Writer - GoldPrice.net
