by Christopher Freeburn | August 15, 2013 4:42 pm
Gold rose sharply in Thursday trading, despite better-than-expected U.S. employment news, as rising violence in Egypt boosted the metal’s image as an island of financial stability.
Clashes between military forces and Muslim Brotherhood mobs overnight left hundreds dead in the most populous nation in the Middle East. The mounting death toll spooked investors, sending equities markets down around the world. The Egyptian military’s inability to suppress Muslim Brotherhood resistance to the ouster of President Mohammed Morsi could tip the nation toward civil war, potentially rupturing political and military relationships across the region.
Precious metals shrugged off a Labor Department report that first time unemployment benefit claims dropped to 320,000 last week, the lowest level since October 2007. Falling jobless claims could prompt the Federal Reserve to accelerate plans to reduce its monthly bond-buying.
Gold futures for December delivery climbed 2% to $1,360.90 per ounce on Thursday, according to CME Group. Gold traded as high as $1,367.90 and as low as $1,317,90. Gold bullion closed in London at $1,366, according to BullionVault.
Silver futures for December delivery vaulted 5.3% to $22.99 per ounce. Thursday’s high for silver was $23.23, while the low was $21.76.
Gold and silver funds improved in Thursday trading.
Gold and silver mining ETFs jumped during the day.
Gold mining shares climbed on Thursday.
Silver mining shares mostly surged during the day.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.
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