Gold Prices Determined To Rally

Gold prices were popping on thin volume ahead of Friday's jobs number.
Author:
Publish date:

NEW YORK (

TheStreet

) --

Gold prices

Thursday were popping ahead of Friday's U.S. unemployment number as trading thinned out before the long weekend.

Gold's April Fool's Rally?

Image placeholder title

Gold for June delivery was rising $13 to $1,127.50 an ounce on the Comex division of the New York Mercantile Exchange. Prices Thursday have traded as high as $1,129.10 and as low as $1,112.30. The

U.S. dollar index

was slightly lower by 0.44% to $80.81. Gold's spot price was rising over $12, according to Kitco's gold index.

Gold prices continued their rally from Wednesday despite uncertainty over Friday's U.S. unemployment number. The Labor Department said initial weekly jobless claims fell by 6,000 to 439,000. Although this was in line with expectations, Wednesday's

Automatic Data Processing

report indicated that the private sector lost 23,000 jobs in March rather than adding. Many economists are expecting unemployment to improve this month.

A disappointing number could temper risk appetite, which would hurt commodities. But the news could also prompt the

Federal Reserve

to keep rates low for an extended period of time pressuring the dollar and supporting gold prices. For now it seems like gold is intent on rallying as markets continue to thin out ahead of Friday's holiday.

Gold prices are battling their $1,080 and $1,130 range with many analysts looking at $1,150 to $1,160 as the key resistance area. "Risk assets are on the rise ...

and the U.S. dollar is actually resilient at $81 on the index

and gold ...

is still rising," says Jon Nadler, senior analyst at Kitco.com. "It's interesting to note that yesterday's ADP jobs data sparked a rally in gold. Today's better-than-expected jobless claims filings also sparked a gold rally ... I'm not saying this is an April Fool's rally here ... but the exaggerated moves ... are indicative of the fact that this is few players pushing around sufficient sums of money

making for outsized moves."

Silver prices

were up 37 cents to $17.90 while copper was rising 2 cents to $3.58. Platinum supply worries triggered by

Lonmin

closing one of its furnaces were still boosting the metal $25 to $1,672.

Image placeholder title

Mining stocks, sometimes a more leveraged way to

invest in gold

, were bouncing.

Barrick Gold

(ABX)

was rising 2.90% to $39.40 while

Newmont Mining

(NEM) - Get Report

was rising 3.89% to $52.92. Large-cap miners

Kinross Gold

(KGC) - Get Report

and

Goldcorp

(GG)

were climbing to $17.53 and $38.73, respectively.

Shares of

Lihir Gold

(LIHR)

were skyrocketing more than 26% to $35.64 after the company

rejected an $8.5 billion bid

from

Newcrest Mining

, arguing its shares weren't properly valued. The company said its gold assets are "world class" as its mines reached an output of 1.124 million ounces last year.

Freeport McMoran Copper & Gold

(FCX) - Get Report

was rising over 3% to $86.28 and

Yamana Gold

(AUY) - Get Report

was higher by 3.65% to $10.21.

>>Slideshow: How to Invest in Gold

>>More stories on gold investing

--

Written by Alix Steel in New York

.

Alix joined TheStreet.com TV in February 2007. Previously, she held positions in film and theater production, management, and legal administration. Alix has a degree in communications and theater from Northwestern University.