Gold Prices Rise For The First Time In A Week

Reuters reported that the rise in US employment this week caused the price of gold to rise 0.8 percent, up for the first time in a week to $1,602.30 an ounce.

As quoted in the report:

The metal initially dropped after the data, which indicated that U.S. employers hired 163,000 workers in July, the most in five months, curbing expectations that the Federal Reserve will launch further monetary stimulus measures to boost growth. However, it quickly reversed those losses as the dollar failed to maintain a brief recovery from lows.

Andrey Kryuchenkov, an analyst at VTB Capital commented:

Europe will have to move fast, since QE3 chances are shrinking very quickly. The ECB’s mandate is limited and the European Stability Mechanism (ESM) has little firepower left. Since there will be a lower probability of another liquidity injection (from the Fed), Europe will have to get itself together and commit to the likes of mutualised debt, more funds into the ESM or even a banking licence for the ESM.

Click here to read the full Reuters report.