GOLD PRICES SLIP ON JOBS REPORT

by Goldline.com | July 02, 2010

Gold prices are consolidating on the New York Spot Market as of 11:51 a.m. EST after a lackluster jobs report as traders unwind their positions ahead of the July 4th weekend. Traditionally, investors have opted for cash on Fridays versus stocks and commodities in an effort to protect from headline risk; however, a weak dollar and bargain buyers could push gold prices higher. (The Street, 7/2/10)

Stocks continued to slip on the New York Stock Exchange as investors remained cautious heading into the long weekend and digest the disappointing jobs report Friday. Employers cut 125,000 jobs from their payrolls last month, more than the 100,000 job cuts expected by economists surveyed by Briefing.com. U.S. markets are closed Monday in observance of the holiday. (CNN Money, 7/2/10)

Davis Hall, head of forex and precious metals private banking at Credit Agricole told CNBC on Thursday that gold may hit $1,350 an ounce by the end of the year. "Sentiment is so excessively bullish and the markets (are) very very well positioned. There hasn't really been a trade off for people to call positions in gold yet, but we are aimlessly waiting in vain for dips,” he said. "Our view is that short term momentum can take it higher...(to) about $1,350 before year end.” (CNBC, 7/2/10)

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