AFX: Gold Prices Fall as U.S. Economy Loses More Jobs
It's been a choppy morning for gold prices, which have been unable to make new major gains following January's nonfarm payrolls report.Ahead of the employment report, gold prices hit a session high of $920 an ounce and dropped about $16 when the release revealed that 598 jobs were lost in January. Prices are still under pressure with the CBOT gold price down $5.15 to $909.49.
With prices holding above $900, strategists are looking for the precious metal to continue to rally. Ashraf Laidi, chief economist at CMC markets, remains bullish on gold.
"We expect renewed recovery towards $925 later in the US session," he said.
As the global economy continues to weaken, commodity strategists are expecting gold and other precious metals to continue to outperform as market participants look for safe haven investments.
"Gold has seen relentless safe haven buying over the recent weeks as investors have ignored the strengthening dollar," said commodity strategists at Barclays Capital.
The news that mines are shutting down is also bullish for gold prices. The strategists at Barclays pointed out that Harmony Gold, the seventh largest gold producer, reported that production dropped 8% in the fourth quarter.
WTI Crude oil is down $1.85 to $39.32, while ICE crude oil is trading down $1.31 to $45.15.
Meanwhile, ICE RBOB gasoline futures are down $4.53 to $122.95 and Globex natural gas is up $0.01 to $1.29. Heating oil at the ICE is down $4.58 to $132.14.
In the mining sector, CBOT gold is trading down $4.60 to $910.80 USD. In Canadian dollars, gold is up $6.73 to C$1133.73. Silver contracts at the CBOT are up $0.07 to $12.92.
Bloomberg's index for base metals is up 3.62 points to 117.18.
Wheat futures at the CBOT are down $3.75 to $558.00.
All data taken at 11:00 a.m. EST.
By Neils Christensen, neilsc@economicnews.ca, edited by Sarah Sussman, ssussman@economicnews.ca
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