Banks Continue Their Criminal Activities, Make Sure You Own Physical Metals

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(H/T Gold Silver Worlds)

Gold prices began this week on a softer note after surging on Friday. The price of the yellow metal snapped a seven-day loss to end sharply higher on Friday, as the price of spot gold rallied by 2.6% or $37 an ounce to close out the week at $1178.50 an ounce. The yellow metal scored its biggest one-day gain in nearly five months, as a retreat in the U.S. dollar and heavy short-covering lifted prices from a 4-1/2-year low. However, at the time of writing, gold prices have given back about half of Friday’s gains.

Last Friday, a report from the Labour Department showed weaker than expected U.S. job growth in October, although unemployment rate dropped to a new six-year low. The non-farm payroll employment rose by 214,000 jobs in October and the unemployment rate was 5.9%.

The dollar slipped after the jobs report was released as investors took profits on the greenback’s months-long rally, which has seen it reach multi-year highs in anticipation of tighter U.S. monetary policy next year. The report also boosted speculation that the Federal Reserve may hold interest rates low amid sluggish global economic growth. Before the report, gold fell to the lowest since 2010 and the dollar touched a five-year high amid expectations for improvements in the labour market.

On Thursday, gold prices ended lower for a seventh straight session, on growing speculation about U.S. interest rate hikes on the back of some upbeat economic data, including a report showing a more than expected drop in initial jobless claims. Then, on Friday, prices surged!

On Thursday, gold prices ended lower for a seventh straight session, on growing speculation about U.S. interest rate hikes on the back of some upbeat economic data, including a report showing a more than expected drop in initial jobless claims. Then, on Friday, prices surged!

This on-going volatility in prices shows the impact traders have on the gold market. By using the paper contracts on Comex, traders can buy and sell huge volumes of gold without ever having to deliver or take delivery. The volumes that they trade do not represent the true quantity in the physical market place. It is simply a speculative play on price, and thus it is important for investors to ignore this volatility or “noise” because it has nothing to do with the real driving factors behind price.

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