Gold has rallied back from a drop of $17 yesterday. The metal is up over $23 today stemming from a bump up in oil prices and further weakening of the dollar. Blamed on profit taking, gold fell yesterday creating buying opportunities for other investors.
One of the main reasons for the increase in the price of gold and oil came when the Department of Energy reported that U.S. stockpiles of crude oil fell 3.06 million barrels in the most recent reporting week. Oil was already gaining back some of the losses from yesterday and then took off to record highs.
The euro also hit an all-time high of $1.5305 after poor U.S. economic data was released, including the employment indicator from ADP showing a drop of 23,000 private-sector jobs in February - 13,000 more than forecasted.
As the Federal Reserve meeting draw closer, the majority of economist are projecting at least a 50 basis point cut, if not 75. This would further depress the dollar, sending gold upwards.
Donald W. Doyle, Jr.,
Chairman and CEO
David Beahm,
Vice Pres. and Director of Marketing and Economic Research
