BLBG:Gold Trades Near Two-Week Low in New York Before U.S. Jobs Data
Gold traded near a two-week low in New York, heading for a weekly decline, as investors waited for a U.S. jobs report to gauge when the Federal Reserve may start slowing stimulus.
Bullion futures fell to $1,362.10 an ounce today, the lowest level since Aug. 22, after data released yesterday showed service industries in the U.S. expanded in August at the fastest pace in almost eight years. Economists expect a Labor Department report today to show U.S. payrolls expanded 180,000 in August following a 162,000 gain in July.
Gold slumped 29 percent from an all-time high of $1,923.70 on this day two years ago. It’s rallied 16 percent from a 34-month low in June as demand for jewelry, bars and coins surged in Asia and amid concern the U.S. will attack Syria for its alleged use of chemical weapons against civilians. Fed officials are debating whether the U.S. economy is improving enough to warrant slowing debt purchases that helped bullion cap a 12th successive annual advance last year.
“At the moment it is Syria versus quantitative-easing tapering and this is what is driving the market,” David Govett, head of precious metals at Marex Spectron Group in London, said today in an e-mail. “This afternoon sees the release of non-farm payrolls in the U.S. and everything really hinges on this.”
Gold for December delivery lost 0.2 percent to $1,370.40 an ounce by 7:55 a.m. on the Comex in New York. Prices are down 1.8 percent this week. Futures trading volume was 35 percent below the average for the past 100 days for this time of day, data compiled by Bloomberg showed. Gold for immediate delivery in London added 0.2 percent to $1,370.57.
ETP Holdings
Holdings in gold-backed exchange-traded products dropped 1.4 metric tons so far this week, after rising in the previous three weeks, data compiled by Bloomberg show. Assets fell to a three-year low of 1,946.9 tons on Aug. 8. Eighteen traders and analysts surveyed by Bloomberg said prices won’t exceed the record within two years and 11 predicted another all-time high.
U.S. President Barack Obama is seeking approval from Congress before taking military action against Syria. The Senate Foreign Relations Committee voted for a restricted operation and U.S. lawmakers are scheduled to reconvene on Sept. 9.
Silver for December delivery was 0.4 percent higher at $23.355 an ounce in New York. Platinum for October delivery added 0.3 percent to $1,486.80 an ounce. Palladium for December delivery was 0.9 percent higher at $693.35 an ounce. It reached $685.25 yesterday, the lowest level since July 8.
To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
