Gold trims gains on U.S. jobs data

14:27, September 04, 2010      

Email | Print | Subscribe | Comments | Forum 

Gold futures on the COMEX Division of the New York Mercantile Exchange pared gains and ended moderately lower on Friday, as the encouraging U.S. jobs report lifted global equity and commodity markets, and eroded gold's appeal as safe-haven. Silver closed at its highest level since March 2008, and platinum also advanced.

The most active gold contract for December delivery lost 2.3 U. S. dollars, or 0.2 percent, to finish at 1,251.1 dollars per ounce.

The U.S. Labor Department announced earlier Friday that the country shed 54,000 nonfarm jobs in August, which is only half of what economists had estimated, while the unemployment rate climbed to 9.6 percent from 9.5 percent in July, which is in line with expectation.

Gold dropped immediately after the report was released, as the stronger-than-expected increase of private sector payrolls lifted hopes about the prospects for the U.S. economic recovery.

Meanwhile, U.S. equity snapped a three-week losing streak and ended sharply higher on Friday, as a slew of stronger-than- expected economic reports fueled market optimism. The strong rally in stock markets also helped encourage investors to transfer their money from gold markets to risky assets.

Gold received some help and clawed back after a report showed that the U.S. service sector expanded for the eighth consecutive month in August at a sharply lower pace. Gold rallied 1 percent this week, and silver soared 4.8 percent on speculations that the improving global economic recovery would lift demand for silver as an industrial metal.

December silver rose 27.7 cents, or 1.4 percent, to 19.949 dollars per ounce. October platinum climbed 9.6 dollars, or 0.6 percent, to 1,561.1 dollars per ounce.



  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Players of Iran throw up their coach Velasco Julio during the awarding ceremony at the 16th Asian Men's Volleyball Championship in Tehran, capital of Iran, Sept. 29, 2011. Iran won the champion after beating China 3-1 in the final on Thursday. (Xinhua/Ahmad Halabisaz)
  • Greek artists burn copies of emergency tax notices during a protest against austerity measures in Athens, Greece, on Sept. 29, 2011. The Greek government is facing a new wave of protests as it introduces new austerity measures to obtain the sixth tranche of aids necessary to overcome the acute debt crisis.(Xinhua/Marios Lolos)
  • A winner of the 36th Miss Bikini International 2011 poses for a photo at the Olympic Sailing Center in Qingdao, a coastal city of east China's Shandong Province, Sept. 29, 2011. (Xinhua/Chen Jianli)
  • Staff members are in position at Beijing Aerospace Control Center in Beijing, capital of China, Sept. 29, 2011. Commander-in-chief of China's manned space program Chang Wanquan announced Thursday night that the launch of Tiangong-1 space lab module was successful. (Xinhua/Rao Aimin)
  • Champion of Miss Bikini from Poland receives trophy at the final of the 36th Miss Bikini International World Competition in Qingdao, east China's Shandong Province, Sept. 28, 2011. (Xinhua Photo)
  • Photo taken on Sept. 28, 2011 shows autumn scenery of populus euphratica forests in Ejina Banner, north China's Inner Mongolia. The populus euphratica forests here, with an area of 390,000 mu, or 26,000 hectares, is one of the world's most famous populus euphratica forests. The golden leaves and sunshines here in autumn is able to attract more than 100,000 person-times annually. (Xinhua/Zhao Tingting)
Hot Forum Discussion