The announcements of the death of gold, it appears, were somewhat premature as the price of the yellow metal continues to rise. Gold prices dropped in the summer on the belief that rising jobs numbers in the United States would lead the Federal Reserve to raise interest rates from September. However, September saw just 142,000 jobs created, well below analysts' estimates of 205,000 and rates are not expected to rise before December at the earliest.
Consequently, in heavy dealings on the Comex market in New York on Friday, gold futures with December delivery dates traded up as much as $15 or 1.3% at $1,159.30, the highest since August 21. And gold is up 5% from where it was trading before the US Federal Reserve decided to hold rates steady at its September meeting. The last time rates were hiked was June 2006.