Sunday, September 09, 2007

Gold Soars Above $700 A Ounce

Newly released unemployment figures sent gold prices above $700 and the stock markets plummeting today. U.S. employment fell for the first time in four years last month with steep declines in construction and manufacturing payrolls. As economists express fear that the worse may be yet to come, including a possible stock market crash and recession, gold reached a fifteen month high on the New York Spot Market, closing at $700.70, up $5.60.

Merrill Lynch, which accurately forecast gold to break $700 in September, has also forecast that gold could reach $1,500 in the next five years. Gold reached its all-time high of $850 per ounce in January 1980.

Analysts see gold's next target to be around $730 per ounce, the 26 year high reached in May 2006. "The market is bullish. Over the coming weeks and months, we will see an attempt to take the market higher towards the $730-$740 area," Peter Hillyard, head of metals sales at ANZ Investment Bank told Reuters. Dennis Gartman, editor of the prominent financial newsletter, Gartman Letter, wrote "This is a very real bull market in gold's favour; weakness is to be bought rather than strength sold."

Silver closed up $0.19, ending the day at $12.61. Platinum was also higher, gaining $7 to close at $1,297. You can see the most current spot prices at

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