BULLION
Gold prices remained with gains at the end of the week as the market derived strength from the weak performance of equity markets. The demand for riskier assets diminished as weaker than expected data from the US turned the markets down as idea of unstable recovery in the economy spooked the investors.
Government data from US showed that the non-farm payrolls dropped more than expected for the month of July. The US dollar fell as much as 1.1 percent after a payroll report signaled the U.S. will be slow in recouping jobs lost in the recession.
Gold reached a three-week high. The metal has advanced 10 percent this year, climbing to a record $1,266.50 an ounce on June 21. Gold futures for December delivery rose $6, or 0.5 percent, to settle at $1,205.30 at 2:04 p.m. on the Comex in New York. However, the holdings of SPDR, the largest gold backed exchange traded fund, has fallen towards 1281.834 tonnes by August 4th from the previous 1282.279.
ENERGY
Crude oil prices fell on Friday as investor sentiment turned sour after the release of US non-farm payrolls figures. The weaker than expected US non-farm payrolls have dented the expectations of a balanced recovery in the economy, reducing the risk appetite among investors.
Light, sweet crude for September delivery settled down $1.31, or 1.6%, at $80.70 a barrel on the New York Mercantile Exchange, the lowest settlement price since July 30. The U.S. economy in July lost jobs for a second consecutive month, the Labor Department said Friday. The report added to worries that the economic recovery will continue to struggle, leaving the demand outlook for commodities uncertain.
Natural gas prices were also on the lower side on Friday as ample inventories of the commodity capped the gains in the counter despite forecasts of hotter than expected weather in the major gas consumer areas of US. Natural gas for September delivery on the New York Mercantile Exchange settled 13.1 cents, or 2.85%, lower at $4.467 a million British thermal units.
Natural gas in U.S. storage for the week ended July 30 stood at 2.948 trillion cubic feet, 8.1% above the five-year average for that week, according to the U.S. Energy Information Administration. In addition, oilfield services provider Baker Hughes Inc. said Friday the natural gas rig count rose by 11 rigs to 983 this week. However, meteorologists with the private-forecasting firm Commodity Weather Group see above-normal temperatures across most of the country from Aug. 11-15.
BASEMETALS
Base metals futures suffered losses finally after recording gains for more than a week as weaker than expected economic data from US, the second largest consumer of copper, and poor performance from the equity market weighed on the sentiments.
The market slid in spite of US dollar weakness. The US dollar stayed near multi-month lows against the European currency following less than impressive jobs figures from the US. However, data from Germany, the largest economy in the Europe, showed that the industrial production in the country suffered a surprise fall during the month of July.
