Sunday, September 9, 2007

Gold stands proud as stocks are hammered

Gold was the big winner in what could be described as safe-haven buying when economic data releases surprised on the weak side on Friday.

According to Chris Craddock, head of derivative strategies at Plexus Capital & Securities, the big move came with the release of weaker-than-expected US jobs data that saw the dollar fall substantially.

“This resulted in commodities moving higher. Also moving higher for the week was oil as inventories continue to fall below expectations,” he said.

SA stocks, bonds and the rand were battered on Friday after the unemployment data raised fears of a slowdown in the US, hitting emerging markets across the board. US payrolls declined last month for the first time in four years, fanning concerns that a housing and credit crisis may shift the world’s biggest economy towards recession.

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