GOLD RALLIES THROUGH 700 USD/OZ LEVEL AS US PAYROLLS FALL

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Gold rallied sharply in afternoon trade, breaking through the 700 usd level for the first time since May 2006, after US payrolls fell for the first time in four years, sparking a drop in the dollar.
The precious metals surged through 700 usd per ounce within minutes of the data being released, and later set a fresh 16-month high of 704.60 usd.
"It was a rather unexpected figure. With it we've gone through that 700 usd figure quite easily so it seems gold is off to the races," said Commerzbank analyst Rory McVeigh.
"Gold has been gunned to take on its position as an inflationary hedge. With the numbers we're seeing today we could see it push up higher, but it is rather choppy out there."
At 1.43 pm, spot gold was trading at 703.30 usd an ounce against 695.70 usd in late New York trade yesterday.
Gold rose sharply yesterday, bolstered by strength in crude oil and safe haven buying after reports the Syrian military had fired on Israeli warplanes.
Prices eased this morning as investors booked profits from the gains, but rallied around midday as strong demand and safe haven buying pushed prices through technical resistance levels.
The market is optimistic physical demand for the metal will firm going into the seasonally strong fourth quarter, while recent turmoil in the financial markets has increased its appeal as a safe haven asset for speculative investors.
"People were looking for cash, but now people are looking for a safe haven for money. They are not happy with currencies, they are not happy with the banks, so gold is providing them with that opportunity," said Simon Weeks, an analyst at Scotia Mocatta.               Doubt if this is right or not.