Gold spikes to near-term high near $1,000
Apparently all it took for gold to push through near-term resistance levels was a 2-day pullback in equities and concern over the pending data on non-farm payrolls due out Friday (September 4) morning.
After hitting an intraday high of $992.55 during trade in New York Thursday, the spot rate for an ounce of gold dipped back to just below $990. The spike was significant given the $976 per ounce late day price point in New York on Wednesday. It also marks the highest level for the shiny precious metal since February, when the commodity was drawing back from the $1,000 level.
As recently reported on, the gold trade has been very narrow over the last several months, with much of it being done in the $910-960 range. After pushing through $960 earlier in the week, and remaining above the eye resistance level, speculators have gained interest in moving money into gold.
The dollar index, which measures the strength of the greenback against six other major currencies, has been week as well, helping strengthen interest in the safe money investment offered by gold.
Still, despite the sudden break of $960, most analysts expect gold to sit in the $980-990 range for a while before a near-term direction is clear. Most believe this week’s gains are mostly due to modest technical catalysts, but that there is nothing significant at this point to propel prices higher, nor nothing in the way of prices remaining at the current level.
Friday’s payroll data could help motivate more interest in gold should the data hint that labor is still lagging behind the rest of the economy, which the Central Bank appears ready to call “out of recessionâ€.
A bad outlook on payroll and jobs could scare people away from stocks and the dollar, producing more near-term interest in gold. However, an overwhelmingly positive number could create a quick rejection at the $990 gold mark, keeping prices below the psychologically important $1,000 point.
In the long-term, the direction of gold remains to be seen. After pushing through $1,000 over a year ago, the spot rate of gold has dropped to $700 before quickly moving back over $900, where it has remained steady for several months.
Neil Kokemuller
2:58 PM EST
Thursday, September 3, 2009
Neil Kokemuller is an Associate Professor of Marketing at Des Moines Area Community College in Des Moines, Iowa, USA. He has a MBA from Iowa State University. He is also in house stock market commentator at Live Charts UK, where you can find real time charts and share prices.
Please note: The information provided in this article is intended for informational and entertainment purposes, and not as advice for financial decisions or investments. Actions taken on the basis of the information shared is at the sole risk and discretion of the individual. Currency investment poses significant risk of loss.
Pete Southern
Pete Southern is an active trader, chartist and writer for market blogs. He is currently technical analysis contributor and admin at this here blog.
Most Popular Content
- Copper Finds Its Footing as Market Sentiment Improves
- S&P 500 Grinds Higher as Rate Cut Hopes Simmer
- Bitcoin Holds Near $120K as 401(k) Buzz Meets Inflation Jitters
- Pound Climbs on BoE Cut and Dovish Signals
- Gold Soars on Tariff Shock as Copper Holds Steady
- Markets Wobble After Highs as Fed Holds Steady and Earnings Send Mixed Signals
- Copper Prices Drift in the Wake of a Surprise Tariff Shock
- Gold Prices Retreat from Highs Amid Easing Geopolitical Tensions
Currency Articles - Aug 13, 2025 1:07 - 0 Comments
Bitcoin Holds Near $120K as 401(k) Buzz Meets Inflation Jitters
More In Currency Articles
Gold and Oil News - Aug 9, 2025 6:33 - 0 Comments
Gold Soars on Tariff Shock as Copper Holds Steady
More In Gold and Oil News
- Copper Prices Drift in the Wake of a Surprise Tariff Shock
- Gold Prices Retreat from Highs Amid Easing Geopolitical Tensions