BLBG:Gold Swings Between Gains and Declines Before U.S. Jobs Report
Gold swung between gains and declines in London, after dropping for a fourth consecutive month, as investors weighed expectations of increased hiring in the U.S. against the need for more stimulus.
Economists expect a report today to show U.S. employers boosted hiring to the most since August last month. The Federal Reserve indicated this week it will maintain its stimulus program as data showed the country’s economy shrank in the fourth quarter. Bullion fell 0.7 percent in January, a fourth successive monthly drop and the worst run since May.
“The uncertainty surrounding recent U.S. data is not helping gold investors come up with a clearer view at the moment,” Joni Teves, an analyst at UBS AG in London, wrote today in a report. “The market is looking for a more convincing catalyst to determine the next direction. Focus now is on today’s employment numbers.”
Gold for immediate delivery added 0.1 percent to $1,664.67 an ounce by 9:21 a.m. in London. Prices rose as much as 0.1 percent and fell as much as 0.2 percent, and are up 0.4 percent this week. Futures for April delivery were 0.2 percent higher at $1,665 on the Comex in New York. Trading volume in New York was 28 percent lower than the average in the past 100 days for this time of day.
The Labor Department will probably say employers hired 165,000 new workers last month, following a 155,000 gain in December, according to a Bloomberg survey of economists. Fed Chairman Ben S. Bernanke signaled that he isn’t close to easing up on $85 billion in monthly bond purchases to spur growth.
The U.S. Mint sold 150,000 ounces of gold coins last month, the most since July 2010, data on its website show. American Eagle silver sales surged to 7.5 million ounces, the most since the mint began offering the product in 1986. It resumed sales Jan. 28 after suspending them for more than a week because of a lack of inventory.
Silver for immediate delivery fell 0.2 percent to $31.38 an ounce. Palladium rose 0.3 percent to $745.50 an ounce. Platinum slipped 0.4 percent to $1,670.87 an ounce.
To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
