Gold Price "Bullish", Unmoved by Strongest US Jobs Data Since 2012 as Dollar Rallies
Wednesday, 7/02/2014 14:00
GOLD PRICE gains of $5 per ounce were erased Wednesday lunchtime in London, as new US data showed a surprise jump in June employment and the Dollar rose on the currency market.
Silver followed the gold price, spiking lower only to recover the tight range of the morning session around $21.05 per ounce.
The private-sector
ADP Payrolls report said the US added 281,000 jobs last month, the strongest rise since late 2012 and well ahead of Wall Street economists' consensus of 200,000.
Peaking at $1329 just before the ADP jobs Report, the gold price eased back to $1324 – a two-day low some 0.6% higher for the week so far.
The Euro currency fell harder, buoying the gold price for Eurozone investors above €970 per ounce, a 3-month high when first reached in late June.
Sterling also dropped back vs. the Dollar after the ADP jobs data – widely seen signalling the US government's official Non-Farm Payrolls report due Thursday – but held near new 6-year highs after strong UK house price and manufacturing figures.
The gold price for UK investors held above £772 per ounce, a level first reached in May 2010.
"It's the first year in several," says Bloomberg, quoting Moody's Analytics director Marisa Di Natale, "where we haven’t had some kind of manufactured fiscal showdown in Washington, which weighs on business confidence and consumer confidence."
"If you have a desire," the newswire quotes one small-company boss, "and can write your name and will go out and work hard, you can get a job here today."
Ukraine's armed forces and National Guard meantime continued what Kiev's parliamentary speaker called their "offensive on terrorists and criminals" in the country's pro-Russian separatist east.
Crude oil prices slipped however, reaching 3-week lows on the Brent contract as a key Libyan port was re-opened.
ISIS extremists in Iraq today
ordered other Sunni groups to swear allegiance, meaning "our revolution has been hijacked" according to one militia leader.
"The recent strength in the gold price," one Asian dealing desk said Wednesday morning, "continues to put downward pressure on premiums in India and China."
Shanghai gold prices again ended the day at a $1.40 discount to London quotes.
"Trending and momentum indicators are bullish," says the technical analysis team at Swiss investment and bullion bank UBS, looking at gold price charts.
Silver prices, in contrast, have "failed to push higher with gold," says Australia's ANZ Bank in its daily commodities note, "struggling to overcome $21.20 despite numerous tests."
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