There seems to be a real relationship between stock markets and the prices of precious metals especially gold. As the stock market performance improved last week, the prices of gold went down substantially. The opposite is happening this week. With jobs market report out showing that there is no good news on employment front and that the economy is not creating new jobs, the stock market started going down. And as the uncertainty grew about the future of economy, the prices of precious metals especially started climbing steadily. Just less than a fortnight ago, the gold prices had touched the roof, breaking all previous records. But as the economy looked in better shape, though for just a few days, the prices started coming down. But on Friday, the gold futures were again approaching the highest level reached last fortnight. The prices of gold went up as much as $47.80, or 2.6%, to settle at $1,876.90 per ounce. This is just 15 dollars lower than the record high that the gold had reached on August 22. At that time that price of gold had climbed to $1,891.90. The job market report creates substantial doubts about claims that the economy was on the road of recovery and that the fundamentals were strong and so there was no fear of recession taking an alarming shape.

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