BLBG:Gold Gains in New York as Investors Weigh U.S. Data, ETP Flows
Gold futures gained in New York as investors weighed the outlook for continued economic stimulus in the U.S. after jobs data trailed estimates against continued outflows from exchange-traded products.
Gold jumped 1.9 percent on April 5 after U.S. payrolls in March were lower than economists’ expectations, bolstering the case for prolonged central-bank stimulus. Gold holdings in the SPDR Gold Trust, the biggest ETP backed by bullion, fell 0.9 metric ton to 1,205.31 tons as of April 5, the lowest since June 2011.
“What is important for gold at this point is that the recent U.S. economic data has eased the pressure that was weighing heavily on the market last week,” Joni Teves, a London-based analyst at UBS AG, said in a report today. “This should feed into lingering concerns about the U.S. economy and the potential for deterioration in data to push out tapering of QE further into the future.”
Bullion for June delivery rose 0.2 percent to $1,578.40 an ounce by 7:31 a.m. on the Comex in New York. Gold for immediate delivery fell 0.1 percent to $1,578.78 an ounce in London.
Futures trading volumes were 24 percent lower than the 100- day average for the time of day, according to data compiled by Bloomberg. Futures prices fell 1.2 percent last week.
“ETP outflows remain the largest downside risk to gold prices,” Barclays Plc. analysts including Suki Cooper wrote in a report today. “Should outflows persist at this pace, they would match the weakest month on record, which was set in February.”
The U.S. dollar fell as much as 0.3 percent against the euro after German industrial production rebounded in February. Gold usually moves inversely to the greenback.
Hedge funds cut bets on rising gold prices 22 percent to the lowest level in three weeks, U.S. Commodity Futures Trading Commission data show. Silver investors are holding a net-short position of 2,982 contracts, the first bet on a decline since the data begins in 2006, the CFTC data show.
Silver for May delivery was 0.1 percent higher at $27.245 an ounce. Platinum for July delivery gained 0.4 percent to $1,541.50 an ounce and palladium for June delivery advanced 1.8 percent to $737.20 an ounce.
To contact the reporter on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
