Gold Rises After US Jobs Data Disappoints – 1/8/2010

by Bullion Prices Staff on January 8, 2010

US gold futures returned higher on Friday following a report showing disappointing employment figures. The Labor Department said non-farm payrolls unexpectedly fell by 85,000 in December. According to reports, that dampened recovery hopes and expectations that the Fed would raise interest rates sooner versus later.

Gold prices had retreated earlier in the day and then rallied after news of the job losses which pushed the US dollar sharply lower, and boosted the yellow metal’s appeal. By day’s close, gold advanced 0.5% while silver and platinum both climbed 0.7%. More New York precious metal figures follow:

  • Gold for February delivery rose $5.20 to $1,138.90 an ounce. It ranged from $1,119.50 to $1,140.00.
  • Silver for March delivery advanced 12.5 cents to close at $18.470 an ounce. It ranged from $18.055 to $18.490.
  • April platinum climbed $11.20 to end at $1,570.60 an ounce. It ranged from $1,537.90 to $1,584.00.

In PM London bullion, the benchmark gold price was fixed to $1,126.75 an ounce, which was a decline of $3.50 from Thursday. Silver rose 3 cents to $18.120 an ounce. Platinum was settled at $1,569.00 an ounce, gaining $21.00.

Notable bullion quotes follow:

“The weak headline [payroll] number has been interpreted by the market to mean the Fed will keep its easy money stance, which has resulted in a very weak U.S. dollar,” Brian Kelly, chief executive of Kanundrum Research, a commodities and macroeconomic research firm, said on MarketWatch. “In turn, gold is a major beneficiary.”

“The U.S. is not in a position to raise rates, and the dollar is going to suffer,” Matt Zeman, a metals trader at LaSalle Futures Group Inc. in Chicago, said on Bloomberg. “This is a green light for gold and other metals to continue higher.”

New York crude-oil for February delivery rose 9 cents, or 0.1%, to $82.75 a barrel. Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.

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