This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Gold Prices Rise on Jobs Miss; Silver at 31-Year High

NEW YORK ( TheStreet ) -- Gold prices rose Wednesday after a reading on the number of jobs companies added in March came in shy of expectations.

Gold for June delivery added $7.40 to $1,424.90 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded in a wider range today to a high of $1,431.70 and to a low of $1,413.10. The spot gold price was rising $5, according to Kitco's gold index.

Silver prices rose 52 cents to $37.51 an ounce, a 31-year high.

The ADP employment report wasn't interpreted as a significant miss. The private sector added 201,000 jobs in March, in line with what analysts are expecting from Friday's jobs number. But the snag came in that February's number was revised lower from 217,000 to 208,000.

"Gold buyers returned after some disappointment in the job sector that may keep interest rates down," says George Gero, senior vice president at RBC Capital Markets. The tone in the gold market was that the Federal Reserve could curb or abandon its $600 billion bond buying program, dubbed QE2, in light of better economic data, especially if the jobs landscape improved. If the jobs picture stays murky, as today's data indicates, then the trend of cheap money should continue.

Also supporting gold's rally is the end of the first quarter on Thursday, which can trigger strong buying or selling from portfolio managers as they want to show they own gold or book profits from it.

"I think you are going to find some rebalancing," says Mihir Dange of Arbitrage. "[But] the majority of the rebalancing you'll find at the end of [the second quarter] and at the end of the year." Dange's range is $1,400-$1,450 for gold. "We have to get above $1,450 in order to renew more bull interest."

"Put a feeler on both," advises Scott Redler, chief strategic officer for According to Standard & Poor's, since 1975 the gold price has risen 0.9% in the first quarter but 4.3% in the second. Gold prices are relatively flat for the year.

Oliver Pursche, co-portfolio manager of the GMG Defensive Beta Fund, has turned skeptical on silver. "Silver is now trading at its narrowest spread to gold prices in 27 years, and a three-decade high. In our view, the recent run up has increased the downside risk for Silver ... significantly."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AEM $33.51 0.00%
EGO $2.86 0.00%
GG $13.73 0.00%
KGC $2.30 0.00%
SGOL $114.55 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs