Global Partners Securities Sees Bright Future for Gold in Light of Recent U.S. Jobs Report

FOR IMMEDIATE RELEASE
New York, New York, United States of America (Free-Press-Release.com) December 3, 2011 -- Gold continued its rise Friday, achieving its biggest weekly gain in over a month. The surge was prompted by inflationary concerns in light of encouraging American labor statistics.

An increasing number of investors, both individual and institutional, have increased their positions in gold to hedge against expected inflation on news that the U.S. unemployment rate fell to a two and a half year low. Evidence that the scheduled euro summit is surrounded by optimism also contributed to the gains.

"A lot of investors are optimistic about economic recovery in light of American jobs figures and the predicted European stimulus. Everyone expects these developments to lead to inflation, a climate that traditionally favors gold." said Aaron Westford, a senior commodities analyst at Global Partners Securities in New York.

The twenty five day correlation between gold and the S and P 500 rose to nearly .7, approaching its tightest positive link in over a year. Positive economic news generally pushes gold higher, as both corporate and individual investors seek to offset inflation.

Earlier this week, gold rallied along with equities and other somewhat riskier instruments after the central banks worldwide combined efforts to boost liquidity. "The markets are focusing on liquidity, at this point. The widespread belief that European leaders will reach a compromised agreement, coupled with the better than expected U.S. jobs report bode well for the long-term future of gold, as well as less covered precious metals such as silver, palladium and platinum,” concluded Westford.

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