Gold Soars Past $4,400 as Weak Jobs Report and Chinese Buying Fuel Rally
The price of gold surged past $4,400 per ounce on August 11, its highest level in roughly two months, as traders scrambled back into bullion due to a weak U.S. jobs report and persistent Chinese central bank buying.
China's People's Bank of China added 20 tonnes of gold in July, extending its buying streak to 21 months, with official reserves climbing to about 76.08 million ounces by the end of July.
The brutal U.S. jobs print, which saw a loss of 23,000 jobs, sent traders cutting wagers on another near-term rate increase, dragging Treasury yields lower and giving gold fresh ammunition against interest-paying assets.
Gold proponent and economist Peter Schiff thinks this trend will continue, saying 'gold and silver rallied today, along with oil's 5% rise.'