Find Out Why Precious Metal Prices Fell On Higher Unemployment Directly At Precious-Metal.org

4 February 2010 – Rattled by news of rising unemployment, commodities were hit especially hard today as precious metal prices fell amid renewed economic concerns. Although expected to show improvement in a report released tomorrow, the new 10.1% unemployment number shocked many who had envisioned a drop in the total. The job front is a closely monitored aspect of the anticipated recovery, with many believing that it is the key component for growth for the United States.

Precious metals prices fell across the board today, dropping throughout the session. Gold was especially hard hit, dropping a disconcerting $45 during mid-day trading, while losses by platinum nearly reached $58 per ounce. Overall, gold and platinum losses today totaled around 4%, while silver plunged nearly 6%.

Because of a heightened level of fear-based trading, bad economic news seems to be motivating precious metal investors. While it may be understandable that a stronger US dollar triggers a lower precious metal price, unfavorable unemployment news should have the opposite effect, as bad economic indicators generally make gold, silver and platinum more favorable.

The good news for investors is that emotion can be removed from investment decisions. Turbulent times have historically favored precious metal investment, as people look for protection of their assets and wealth in something that is not based directly on the US dollar. For this reason, metal prices have done well, even during difficult times.

In spite of the bad news in today’s headlines, precious metals have proven to be strong investments during economic turmoil. With prices turning sharply lower today, investors might be wise to consider adding gold, silver or platinum bullion to offset losses and profit handsomely when the prices make the anticipated recovery. 

Daily Updates Archive

Danny Burns

Senior Staff Writer - Precious-Metal.org