Confidence in the stock market plunged following the dismal news of August jobs achieving zero. Traders instead opted for gold – just as they did when the country was plunged into depression decades ago.
Gold surged nearly 3 percent on Friday, hitting its highest level since last week’s record, as investors sought refuge in safe haven assets following a bleak U.S. labor market report.
Some investors viewed the lack of jobs growth in August as a sign the world’s largest may be heading back into recession, heightening demand for gold.
Jobs creation in July and June were trimmed by a total of 58,000 jobs, and the unemployment rate stood at 9.1 percent. The jobs data, the worst in nearly a year, put more pressure on the U.S. central bank’s policy-setting committee, which meets next on September 20 and 21, having extended its confab to two days to allow time to examine all available options for boosting U.S. growth.

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