Gold tests $1100 after bleak jobs report

The COMEX December gold futures contract closed up $6.40 Friday at $1095.70, trading between $1086.50 and $1101.90

November 6, p.m. excerpts:
(from Bloomberg)
Gold futures jumped to a record, topping $1,100 an ounce, after the labor department said the unemployment rate in the U.S. reached a 26-year high of 10.2 percent in October. “There’s massive investment demand for gold,” said Christoph Eibl, a co-founder of Tiberius Group. “I see more liquidity pumped in to lift the economies from bad news.” The metal reached $1,101.90 in New York…more
(from Dow Jones)
Analysts described a choppy trading session with pockets of selling by some traders to book profits. “It’s still a positive day with a high settlement and an uptrend,” said Scott Meyers, senior trading analyst with Pioneer Futures division of MF Global. “The market looks like it will forge ahead and make a firm assault on $1,100 and settle above it next week”…more
(from CNN)
Adam Klopfenstein, senior market strategist at Lind-Waldock, said investors who were expecting an economic recovery “threw in the towel” after the jobs report. At the same time, investors who think the economy will continue to worsen “want to own something tangible. It looks like the market is giving gold the green light regardless of what’s going on in equities or the currency markets.”…more
(from AP)
As the dollar wavered between gains and losses against other currencies, the Labor Department’s worse-than-expected employment report signaled more bumps in the road to recovery and affirmed for investors that the Federal Reserve will have to keep interest rates low for the foreseeable future to support the economy…more
(from Marketwatch)
“With unemployment at 10%, the implications for Fed policy is that they have their hands tied and cannot defend the dollar,” said Joe Foster, manager of the Van Eck International Investors Gold Fund. “We’re going to see lots of new records going forward. By year end, it wouldn’t surprise me to test $1,200 and then $1,300 by early next year before we see some consolidation.”…more

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November 6th’s audio MarketMinute