Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures tacked on $11 an ounce Friday as weak U.S. employment data for June sent investors scurrying for an alternative to stocks and other risky assets, helping gold prices score a weekly gain of 4%. Gold futures for August delivery climbed $11, or 0.7%, to close at $1,541.60 an ounce. Earlier, the metal touched a high of $1,546. Gold futures, which haven�t closed at a level this high since June 22, marked their highest weekly percentage gain since the week of Nov. 6, 2009. �Gold is benefiting from the dismal job numbers, and fears/hopes that the [Federal Reserve] will be forced to crank the money pumps open once again,� said Brien Lundin, editor of Gold Newsletter.

The U.S. Labor Department said Friday that nonfarm payrolls rose by only 18,000 in June, well below the 125,000 gain expected by economists surveyed by MarketWatch. Job gains in May were revised down to 25,000. �Investors know governments will now need to continue the stimulus programs and keep printing money,� said Keith Springer, president of Springer Financial Advisors in Sacramento, Calif. �They know they can�t and won�t throw in the towel yet and let the economy sink back into recession. Some investors are also buying gold as a hedge against Armageddon.� See full story.