Saturday, July 9, 2011

Gold holds gains after weak US job data

Gold prices held onto gains of nearly 1% on Friday, achieved after weak US nonfarm payrolls data renewed fears about the health of the world's biggest economy and spurred safe-haven buying.

Spot gold rose to a two-week high of USD 1,545.30 an ounce, and steadied around USD 1,540.75 by 1:21 pm EDT (1721 GMT) against USD 1,531.85 late in New York on Thursday.
US gold futures for August delivery rose USD 10.90 to USD 1,541.50, having reached a two-week high at USD 1,546.

Employers in June added the smallest number of new jobs in nine months, dashing hopes of a pick-up in economic recovery. Nonfarm payrolls rose by 18,000, the Labor Department said, well below economists' expectations for a 90,000 rise.

The dollar dropped against several currencies as the US jobs data strengthened expectations the Federal Reserve will leave interest rates low well into next year, prompting investors to embrace alternate safe-havens.

A weaker dollar often boosts dollar-denominated assets, such as gold, because of the advantage it provides buyers outside the United States.

Among other precious metals, silver hit a four-week peak at USD 36.82 an ounce, and remained higher around USD 36.51 against USD 36.41.

Spot platinum slipped to USD 1,729.99 an ounce from USD 1,739.85 on Thursday. Spot palladium was down at USD 775.47 an ounce against USD 781.55 previously.
The platinum:palladium ratio -- the number of ounces of palladium needed to buy an ounce of platinum -- held at its lowest in more than four months at 2.23.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

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