Gold dipped below US$1,240/oz late in the day after the non-farm payrolls update came in better than expected, showing a loss of 54,000, while analysts expected to see more than 100,000 jobs lost. The unemployment rate expectedly increased to 9.6%.
The yellow metal has been on the rise all week with investors looking to hedge risks ahead of today’s jobs update, expecting a large reduction in payrolls. These concerns were reinforced by yesterday’s jobless claims data, which showed that initial claims declined by a lesser than expected 6,000 to 472,000.
Stock markets in Europe and the US rallied on the news. The FTSE 100 advanced 1.3%, while the Dow Jones Industrial Average is projected to add 1% in early trade.
Gold is seen as a safe haven asset and usually moves inversely to equities.
Silver declined to US$19.54/oz, while platinum rose to US$1,553/oz.
Most major mining stocks were on the rise today. Platinum producer Lonmin (LON:LMI) and silver miner Fresnillo (LON:FRES) advanced 2.3%. African Barrick Gold (LON:ABG) posted a small gain, while gold miner Randgold Resources (LON:RRS) went against the tide, sliding 1%.
Specialty chemicals firm Johnson Matthey (LON:JMAT) added 1.45%.
Midcaps followed the trend with gold miner Petropavlovsk (LON:POG) and silver producer Hochschild Mining (LON:HOC) climbing 2.3% and 2% respectively.
Aquarius Platinum (LON:AQP) was flat.
South America focused gold and silver explorer Patagonia Gold (LON:PGD) was among the top performers in the sector with a 12.5% surge.
Copper and gold focused explorer and developer EMED Mining (LON:EMED) and South Africa and Botswana operating diamond mining and exploration company Firestone Diamonds (LON:FDI) followed with gains of over 6%.