, IncFebruary 25, 2010 – After negatively reacting to continuing problems in Greece and mixed signals from the Federal Reserve, gold prices began to regroup today on news of a weaker than expected US economy. After trading lower early in the session, gold saw increases as higher than expected unemployment figures combined with record low new housing sales to show the economic weakness in the United States is still lingering.
At 12:00 PM EST today, gold prices stood at $1,103.30, up $5.10 for the day. New unemployment claims for last week reached almost one-half million and sales of new homes plummeted, leaving the stability of the US economy uncertain and pushing up the price of gold, silver and platinum. These gains are welcome news to investors, who have seen losses over the past two days that eliminated part of the gains experienced during the month of February.
These gains are viewed as a positive sign for gold. News of a drop in consumer confidence and an announcement that the Federal Reserve still views the economy as fragile had weakened the risk appetite of some investors, leading to gold’s drop this week. The return above gold’s resistance point of $1,100 per ounce suggests that in spite of the headwinds hindering gold, it is maintaining fundamental strength and positioning for another move upward.
With gold prices recovering, now is an opportunity for investors to get back into the market. Although analysts predict some volatility, many expect prices to begin climbing again, as they regroup on the weak US economy data and once again offer a safe-haven investment to buyers.
Ronald Stevens
Senior Staff Writer - GoldPrice.net
