Daily Gold Update

Source: Marketwatch

San Francisco— Gold rallied nearly 3% Friday as investors feared for the U.S. economy in the wake of the weakest jobs report in nearly a year. Gold for December delivery rose $47.80, or 2.6%, to $1,876.90 an ounce on the Comex division of the New York Mercantile Exchange � $15 from gold�s $1,891.90 settlement record set a week and a half ago. On the week, gold rallied 10%. The U.S. economy didn�t add jobs in August, the Labor Department said earlier Friday. That was the weakest performance in nonfarm payrolls since a decline in September 2010. Read more about the jobs report.

The dismal report knocked U.S. equities as well as oil and other commodities linked to industrial activities. �It solidified the flight-to-quality� buying into gold, said Charles Nedoss, a senior market strategist at Olympus Futures in Chicago. It is tied to the same issues that have prompted a rally in gold in recent months, namely fears of a global recession, he added. Besides giving investors a fresh reason to buy assets considered safer, the payrolls report raised expectations of further Federal Reserve easing to try to revive the economy and add jobs at a faster pace. See full story.