By Claudia Assis and Virginia Harrison, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures turned higher Friday after a report showed U.S. employers last month added the fewest number of jobs since September, spurring buying in the metal on worries about an economic slowdown.
Gold for August delivery GCQ11 +0.81% , the most active contract, added $12, or 0.8%, to $1,544.70 an ounce on the Comex division of the New York Mercantile Exchange.
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 gold buying.
The key U.S. nonfarm-payrolls report showed that job growth slowed to a crawl in May and the unemployment rate ticked higher. That capped a week of disappointing macroeconomic data, which called into question the recovery and raised the specter of a double-dip recession.
Meanwhile, silver for July delivery SIN11 -0.79% shed 43 cents, or 1.1%, to $35.78 an ounce. In the previous session, silver lost 4%.
The dollar index DXY -0.30% , which measures the greenback’s performance against a basket of six rival currencies, also got knocked by the jobs report. The index recently traded at 74.106, compared with 74.301 in North American trade late Thursday. Read more about currencies.
Copper for July delivery HGN11 +0.14% was flat at $4.08 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 +0.01% added $2.10, or 0.1%, to $1,819.20 an ounce. September palladium PAU11 +0.89% advanced $6.70, or 0.1%, to $777.55 an ounce.
Both metals are key components in the production of parts used in automotive exhaust systems, and they 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.
