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Gold Adds 3.8% vs. Dollar, Hits Record Weekly Close vs. Euro, on Weak US Jobs Data

From Chris Mullen at

Gold fell over 1% in London on Friday, dipping as low as $1119.50 an ounce before it shot higher after the latest US jobs data came in much worse than expected.

Oil edged higher as the US Dollar index fell in reaction to the jobs report.

Treasuries found slight gains while the Dow, Nasdaq, and S&P remained near unchanged as economic worries were offset by the outlook for continued low interest rates.

The BLS Net Birth/Death adjustment for new business start-ups added some 59,000 payrolls to December's data, but reported job losses in the Non-Farm Report were still 85,000 down from Nov.

The Unemployment Rate held at 10.0%, with average earnings rising 0.2% in line with expectations. The average work-week was unchanged.

Wholesale US Business Inventories meantime showed a surprise 1.5% rise for Nov. after growing by 0.6% in Oct.

The Gold Price reached as high as $1139.12 by 09:00 EST in New York, falling back mid-morning but ultimately climbing back higher into the close and ended near its earlier high with a gain of 0.5% for the day.

For the week, Gold added 3.8%. The Gold Price in Euros rose 3.1% to its highest weekly close ever at €790 an ounce.

Silver fell over 1.5% on Friday to drop as low as $18.01 in Asian dealing before it jumped to $18.45 at the New York opening.

Silver prices then also fell back near unchanged by late morning, but also rallied back higher in the last couple of hours of trade and ended with a gain of 0.6%.

For the week silver jumped 9.3%. Crude oil added 4.3%, while the major US stock indices rose some 2%.

Platinum gained $21.50 on Friday to $1571.50 an ounce, and copper remained at about $3.41.

Gold Mining and silver equities held near unchanged for most of the morning, but they then headed higher in afternoon trade and ended with over 1% gains, up some 8% for the week.

Next week's US economic highlights include the Trade Balance on Tuesday; the Federal Reserve's Beige Book of analysis and the Treasury Budget on Wednesday; Initial Jobless Claims, Retail Sales, Import and Export Prices, and Business Inventories on Thursday; and Consumer Price Inflation, Empire Manufacturing, Capacity Utilization, Industrial Production, and Michigan Sentiment on Friday.

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Chris Mullen is chief content manager of the GoldSeek family of websites, a leading source of gold news, comment and mining-stock data for private and institutional investors.

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