Gold Slips Ahead of Job Report
Gold prices slipped from a one month high on Thursday ahead of Friday’s non-farm payrolls report which is coming out ahead of a long weekend for the precious metal’s traders.
Positive economic data released on Friday showing that factory orders grew at a greater than expected rate for March offset the impact of a weaker dollar.
The positive factory orders report offered optimism that the country’s labor market continued to grow even after growth stalled with the Federal Reserve looking out for signs of economic growth in order to raise the country’s lending rates.
Gold for immediate delivery slipped 0.3% to trade at $1,200 an ounce at 0300 hrs GMT on the Comex division of the New York Mercantile Exchange.
Gold for June delivery, the commodity’s most actively traded contract, slipped $7.30 or 0.6% to 1,200.90 an ounce on the Nymex.
The precious metal pared early morning gains after the release of reports showing the US’s trade deficit narrowed to a 6 year high in February and the number of people filing new claims for unemployment benefits fell last week.
The prices also reversed earlier gains on the announcement that the six nations locked with Iran in talks on constraining the country’s nuclear program had reached a tentative deal.
Gold prices had jumped to $1208.20 an ounce on Wednesday after payrolls processer Automatic Data Inc released a report showing that private jobs grew slower than expected for March.
Analysts polled by the Wall street Journal expected nonfarm jobs to grow by 248,000 in March down from February’s 295,000.
Gold trading was expected to thin out on Friday with European Markets closed up to Monday and American markets closed for Good Friday.
“Good news for the economy is bad news for gold, still meaning no inflation in sight and rate increase schedule (is) again confusing due to today’s jobless claims,” George Gero, precious metals strategist for RBC Capital markets in New York, told Reuters.
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Originally published at www.forexminute.com on September 17, 2013.