Gold & Dollar Rise as Euro Sinks, Dow Fall Through 10,000

From Chris Mullen at GoldSeek.com...

Gold dropped to as low as $1197 in London on Friday morning, spiking as high as $1209 following the release of May's disappointing US jobs report in early New York trade.

The Non-Farm Payrolls data showed the Bureau for Labor Studies accounting for 215,000 of the 431,000 net jobs increase with its statistical “new business birth/death adjustment”.

Some 400,000 of the headline total came from temporary government Census hiring.

The Gold Price then fell back to $1197 before climbing to a new session high of $1218.50 a little after midday, closing with a gain of 0.7% for the day, some 0.3% up for the week.

The US Dollar index rose markedly ahead of the New York opening as the Euro dropped below $1.20 for the first time in four years after concerns about Hungary’s fiscal problems added to those seen in many existing Eurozone states.

Gold priced in Euros rose to a new all-time closing high at €1013 after hitting a new record intraday high of €1015 an ounce.

Crude oil fell over 4% on increased worries over tepid energy demand after the worse than expected jobs report.

Silver Prices ignored gold’s late session rise and fell throughout most of trade in New York to end the day with a loss of 3.3%, down some 5.4% for the week.

Treasuries climbed higher as the Dow, Nasdaq, and S&P dropped over 3%. The Dow closed below 10,000 points, down more than 2.0% for the week.

Platinum lost $18.60 to $1518 an ounce, and copper fell nearly 13 cents to $2.81. 

US Gold Mining and silver equities fell about 2% in the first half hour of trade before they rallied back to roughly unchanged by midday, but they fell back off in afternoon trade and ended with over 2% losses for the day, down a similar amount for the week.

Next week’s US economic highlights include Consumer Credit on Monday; Wholesale Inventories and the Fed’s Beige book on Wednesday; Initial Jobless Claims for last week, plus the Trade Balance and the Treasury Budget on Thursday; and Retail Sales, Michigan Sentiment, and Business Inventories on Friday.

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