GOLD PRICE NEWS - The gold price surged $16 to $1,133 as a weaker U.S. dollar buoyed the price of gold. With today’s rise, the gold price has now climbed for the fourth consecutive session and is trading at six-week highs. Over the same time frame, the U.S. Dollar Index (DXY), which measures the dollar on a trade-weighted basis against a basket of other fiat currencies, has actually advanced. A stronger dollar may have kept the gold price from breaking out to the upside, but it has been unable to keep gold from falling back below the $1,100 per ounce barrier. On the COMEX, gold futures - April contract - closed higher by $19.10 at $1,137.40 per ounce.
Gold’s ascent in terms of other leading global currencies has accelerated. The price of gold hit a new all-time high against the euro of 835.70 per ounce and in terms of the British pound, the gold price reached a new record level above 748. The pound declined for the sixth straight trading session against the U.S. dollar. The uncertain political environment in the U.K. has presented an obstacle in the policymakers’ quest to reduce its mounting fiscal deficits.
Written off as irrelevant and a relic of an ancient monetary system, gold has begun to establish itself as the currency of choice for many investors that are concerned about the consequences of the ongoing currency debasement taking place across the globe. Sovereign debt issues in Greece and other European nations have continued to make headlines day after day, leading to declining confidence in the integrity of paper currencies.
Amid today’s gold price rally to $1,133 per ounce, the price of gold broke out of the $1,090 - $1,120 trading range it had closed between since February 11. While from a technical perspective this is a positive development, gold bulls will need to see follow through in the coming days in order to definitively say that the gold price has resumed its longer-term uptrend.
Looking ahead to the rest of the week, several important economic reports are scheduled to be released. On Wednesday, the monthly ADP employment report, the Institute of Supply Management (ISM) data, and the Federal Reserve’s Beige Book will be announced. Thursday brings weekly jobless claims and pending home sales while on Friday the closely-followed nonfarm payrolls report and unemployment rate are released.
