By Virginia Harrison, MarketWatch
SYDNEY(MarketWatch) — Gold futures edged lower in electronic trading on Friday as the dollar rose, but markets were cautious ahead of the release of the closely watched U.S. jobs report.
Gold for August delivery GCQ11 -0.0065% , the most active contract, fell 80 cents, or 0.1%, to $1,531.90 an ounce on the Comex division of the New York Mercantile Exchange during Asian trading hours.
It has been an up-and-down week for gold, with reports of progress in the resolution of euro-zone sovereign-debt issues dampening the dollar and supporting some buying.
On Friday, the key U.S. nonfarm jobs numbers will be released, and economists surveyed by MarketWatch are expecting the U.S. economy to add 125,000 jobs in May, down from the 244,000 jobs that were added in April.
Silver extended recent losses, with the July contract SIN11 -0.45% shedding 14 cents or 0.4% to $36.08 an ounce, after closing the North American session 4% lower.
The dollar index DXY +0.03% , which measures the greenback’s performance against a basket of six rival currencies, traded up at 74.356, from 74.301 in North American trade late Thursday. Read more about currencies.
The dollar tends to move inversely to dollar-priced commodities such as gold and silver.
The broader metals complex offered a mixed performance during Asian trading hours.
Copper for July delivery HGN11 +1.31% moved higher, adding 5 cents, or 1.1%, to $4.13 a pound.
Analysts at Barclays Capital said destocking in the supply chain, notably in China, has masked demand strength and weighed on prices.
“Physical indicators in the Chinese market have turned more constructive of late, signaling tightening conditions. We expect the copper market to tighten substantially over the second half, and for prices to hit new highs later in the year,” the analysts said.
Platinum for July delivery PLN11 -0.25% declined $3.50, or 0.2%, to $1,814.30 an ounce, but its losses were outpaced by palladium, with the most actively traded September contract PAU11 -0.25% dropping $2.90 or 0.4%, to $767.50 an ounce.
Both metals are key components in the production of parts used in automotive exhaust systems, and often track the performance of the auto-sector.
“Disruptions along the auto-industry’s supply chain have weighed on auto-catalyst demand and the platinum group of metal prices. Yet, when demand picks up, structural supply constraints should tighten market balances, tilting price risks to the upside,” Barclays Capital said.
