By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Gold futures crept higher in electronic trading Friday, as equity markets were savaged on global growth concerns, increasing the metal’s safe-haven investment appeal.
Gold for December delivery GC1Z -0.01% added $5.90, or 0.4%, to $1,665.90 an ounce on the Comex division of the New York Mercantile Exchange during Asian trading hours.
The gains made up some of the losses posted in the North American session, as investors sold out of positions to meet margin calls after a sharp sell-off in equities. Read more about Thursday’s metals session.
Asian share markets tracked the U.S. stock plunge Friday, with falls of around 4%, as debt and economic growth fears mounted. Read more about Asian stock market plunge.
All eyes were on the U.S. non-farm payrolls report, due later Friday, with an upside surprise needed to improve market sentiment. Read U.S. non-farm payrolls preview
Chintan Karnani of Insignia Consultants in New Dehli said the report “could determine whether the Federal Reserve will start another round of quantitative easing (QE3),” and if the numbers are bad, “then bullion will zoom.”
“If the [non-farm payroll] numbers show further slowdown of the U.S. economy, spot gold could rise [as high as] $1,740 an ounce, while silver may rise [as high as] $46.80 an ounce,” Karnani wrote in a note to clients.
“If the numbers beat expectations, and QE3 gets postponed, gold and silver could fall, and the U.S. dollar will gain,” he said.
The dollar index DXY -0.10% which compares the U.S. unit to a basket of six other currencies, rose to 75.132, from 75.109 late Thursday in North American trading. Read more on currencies.
The broader metals complex lost ground during Asian trading hours Friday, with palladium leading the declines.
Silver for September delivery SI1U -1.16% fell 23 cents, or 0.6%, to $39.19 an ounce.
September copper HG1U -2.05% lost 5 cents, or 1.2%, to $4.19 a pound.
October platinum PL1V -1.69% dropped $29.90, or 1.7%, to $1,699.50 an ounce. September palladium PA1U -2.54% lost $19.15, or 2.5%, to $733.80 an ounce.
Virginia Harrison is a MarketWatch reporter based in Sydney.
