GOLD,SILVER & PRECIOUS MARKET WRAP

The price of gold has become one of the dominant themes in global markets over the past couple of years as the financial crisis unravelled. The Gold wrap reports on the latest trends in the price of the precious metal as well as factors influencing the demand for the safe haven asset.

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Friday, February 03, 2012

Gold falls as jobs data boosts US dollar

Gold falls as jobs data boosts US dollar

Gold fell this afternoon, hit by a combination of profit taking and a surge in the US dollar, which has an inverse relationship in the yellow metal.

The American currency got a boost from today’s non-farm payrolls data from the US Department of Labor. The report revealed that the US economy created 243,000 jobs last month, while expectations were for a gain of up to 150,000.

In addition, the unemployment rate surprisingly declined from 8.5 percent in December to 8.3 percent, a sign that the economic recovery in the US is picking up speed.

The marked improvement seen in the jobs market last month and in December when the economy added 200,000 jobs makes it unlikely that the Federal Reserve will opt for another round of quantitative easing to encourage spending and support the recovery.

Further stimulus measures would lift the rate of growth in consumer prices, reducing demand for the US dollar, while boosting the appeal of gold as an inflation hedge.

Gold traded at US$1,741/oz, down US$17 from Thursday’s close. Silver slipped 55 cents to US$33.81/oz and platinum dropped US$9 to US$1,619/oz.

Today’s top risers were:

Mariana Resources (LON:MARL), up 11 percent at 10.4 pence at midday

Trans-Siberian Gold (LON:TSG), up 8 percent at 82 pence

Condor Resources (LON:CNR), up 7 percent at 6.95 pence

Kryso Resources (LON:KYS), up 6 percent at 32.45 pence

Peninsular Gold (LON:PGL), up 5.5 percent at 32.25 pence

The top fallers were:

Orsu Metals (LON:OSU), down 10 percent at 11.25 pence at midday

Greatland Gold (LON:GGP), down 8.5 percent at 1.19 pence

North River Resources (LON:NRRP), down 4.5 percent at 1.46 pence

Patagonia Gold (LON:PGD), down 4.5 percent at 43.5pence

Angel Mining (LON:ANGM), down 2.5 percent at 2.36 pence


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