Although the price of gold slightly declined on Wednesday, overall the price of gold has been on a six-day streak of growth. Year over year, the price of gold is down, when it soared to $1,858.30 an ounce not long after credit rating agency Standard Poor's downgraded U.S. debt. The recent price jump of gold on Thursday, (up 1.9% to $1,669.10 an ounce) has been speculated by analysts, who suggest jump was propelled in part by an unexpected rise in jobless claims that highlighted the job market's weakness. The price jump is contradicted by an HSBC report from China, which reflects a slumped manufacture performance. A report from the firm Markit, has analyst predicting a recession for the entire European market, due to the staggering decline in business activity.
Chief executive, Marin
Aleksov, of precious metals broker Rosland Capital, believes there is potential in China, Europe and the U.S.: "There's the potential for China, Europe and the U.S. to all do QE at the same time this fall…it's the perfect
Analyst James Bullard, President of the St. Louis Federal Reserve Bank, told CNBC that the notes from Wednesday’s Fed meeting were "stale" and said that he felt the major economic boosters were necessary.
The recent housing market report suggests a real estate rebound is likely. Rising prices and increased home sales, in addition to consumer market on the mend, point to signs of an improving economy. An improving economy may further hinder a gold rush.
But experienced analysts like Marin Aleksov disagree:
"The numbers are not good enough for the economy," he said. "We're not creating enough jobs, enough wealth. The last GDP numbers were
very bad. There's a fiscal cliff coming up at the end of the year. We need to do a lot more in order to progress."
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