Better-than-expected report calms market but bullion keeps rally
By Claudia Assis and Virginia Harrison, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures edged higher Friday, holding gains as a much-anticipated jobs report came in better than expected, but investors remained concerned about a double dip for the U.S. economy.
Gold for December delivery GC1Z +0.01% added $2.10, or 0.1%, to $1,661 an ounce on the Comex division of the New York Mercantile Exchange during Asian trading hours.
The gains made up some of the losses posted in the previous session, when investors sold out of gold positions to meet margin calls after a sharp sell-off in equities. Read more about Thursday’s metals session.
The U.S. Labor Department reported Friday the economy added 117,000 jobs in July, and the unemployment rate fell slightly. Read more about the jobs report.
Economists surveyed by MarketWatch expected the U.S. to add a seasonally adjusted 75,000 jobs in July
The news helped early oil and stocks trading, but both asset classes were recently trading lower after the optimism from the report faded.
Asian equity markets tracked the U.S. stock plunge Friday, with falls of around 4%, as debt and economic growth fears mounted. Read more about Asian stock market plunge.
The jobs report “could determine whether the Federal Reserve will start another round of quantitative easing (QE3),” said in a note to clients Chintan Karnani of Insignia Consultants in New Delhi.
The dollar index DXY -0.48% which compares the U.S. unit to a basket of six other currencies, rose to 75.822 from 75.109 late Thursday in North American trading. Read more on currencies.
The broader metals complex lost ground on Friday, with palladium leading the declines.
Silver for September delivery SI1U -2.65% fell 40 cents, or 1.1%, to $39.05 an ounce.
September copper HG1U -3.16% lost 5 cents, or 1.2%, to $4.18 a pound.
October platinum PL1V -1.69% dropped $18.60, or 1.1%, to $1,710.80 an ounce. September palladium PA1U -3.49% lost $12, or 1.6%, to $740.90 an ounce.
