Opalesque Industry Update - Gold prices rallied to a nudge a fresh all time high of high today of $1818 just ahead of the release of US Weekly Jobless Claims amidst signs that there was eroding business growth and a possible double dip in the economy. Gold has risen by over $21 today to its highs which is a gain of 1.2%. At the time of writing the market is digesting worse than expected jobs data which confirm that the economy is struggling.|
Gold remains not only a safe haven in an economic crisis, but it also provides one of the clearest and broadest bell-weathers of market sentiment - that being so, the gold market is telling us that we are potentially heading towards a second and perhaps more damaging economic crisis. Gold is giving the clearest signal to policymakers that there needs to be a comprehensive and cogent plans to reduce the debt levels and restore some growth. There is a growing sense that our leaders are failing in this task and there remains a policy vacuum with regards to the economic crisis at the heart of European and US administrations.