Gold moved higher Friday as investors looked to safe-haven assets in the wake of the U.S. missile strike against Syria -- with an initial spike to $1,269 an ounce breaching a critical $1265 resistance level. The metal is still trading at $1,268.90 as I write this.
Although the Syrian news was responsible for gold's initial move higher, the U.S. strike might be less important going forward than Friday's weak non-farm payrolls report will be. The paltry 98,000 jobs that America created in March are raising serious questions about whether the Federal Reserve can continue to raise interest rates without seriously damaging the economy. If rates remain low, gold's ability to attract investment will grow due to its excellent track record of preserving wealth in times of financial stress.
If the metal can close above the critical $1,265 level Friday, then we could be looking at a near-term move to $1,300. So, Friday's price action looks to be very interesting as April gets underway.
(Written by David Yoe Williams)