Gold News

Gold Ends Week 1.7% Lower as Oil Touches $70, Dollar Gains on US Jobs Data

From Chris Mullen at GoldSeek.com...

The Gold Price remained near unchanged in Asia and London on Friday and then dropped in early New York trade to see a loss of $24.40 at $955.80 an ounce.

Gold Prices rallied back higher into the close, but still ended with a loss of 1.9% for the day and 1.7% for the week.

The Gold Price in Euros fell to about €688.

Silver fell as much as $0.67 to $15.15 on Friday before it also rallied back higher slightly, but it still ended with a loss of 2.7%.

For the week silver lost 1.4%.

Platinum meantime gained $3 to $1275, and copper fell a couple of cents to about $2.28.

Gold Mining and silver equities fell about 5% at Friday's opening and remained near that level for most of the rest of the day.

Oil initially jumped to a new high for 2009 above $70 per barrel in reaction to a better-than-expected US jobs report showing 345,000 payroll cuts for May instead of the 520,000 forecast.

The BLS Net Birth/Death adjustment for business start-ups added 220,000 payrolls to May’s data. The Unemployment Rate rose to a new 26-year high above 9.4%.

Crude oil prices then fell back off slightly by the close as traders turned their attention to the US Dollar’s positive response to the data. It rose, and Treasury bonds fell, while the Dow, Nasdaq, and S&P were mixed in mostly positive reaction to the jobs report, which some argue signifies that the recession may be ending.

Next week’s US economic highlights include Wholesale Inventories on Tuesday, the Trade Balance, Treasury Budget, and fed’s beige Book on Wednesday, Retail Sales, Business Inventories, and Initial Jobless Claims on Thursday, and Import and Export Prices and Michigan Sentiment on Friday.

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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