Gold for August delivery added $9.70 to settle at $1,542.40 at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,548.40 and as low as $1,524.90 while the spot gold price was up $7.80, according to Kitco's gold index.
After a dismal jobs report and an even worse market reaction, investors turned to gold as a safe place to stash cash for the weekend. The unemployment rate rose to 9.1% in May while the private sector added only 83,000 jobs and nonfarm payrolls increased by 54,000 compared to the 151,000 expected. April's numbers were also revised lower.
The CME said Friday that gold saw five consecutive days of open interest records, indictating increased long positions, hitting a high of 1,244,620 contracts on May 24, 2011. On the flip side, silver suffered for most of trading from being an industrial metal Friday rather than a safe-haven currency. Prices recovered late in the day and closed down just 1 cent to $36.19. In after-hours trading silver was adding 2 cents. "We had three weak ISM reports" from China, the EU and U.S., argued Streible, "so the demand has come down [for silver] and I think that gold/silver ratio is going to continue to grind its way higher." The higher the ratio means that it takes more silver to buy an ounce of gold which favors a lower silver price and a higher gold price.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV