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Golds Ends the Week 1.9% Lower After Central-Bank Selling; Weak Data Means No Change in Sub-Zero US Rates

From Chris Mullen at

Gold traded mostly slightly lower in Asia and London on Friday and then rose to near unchanged at $912.55 prior to the latest US jobs data.

Dropping hard at the New York open to $901.85 per ounce Gold then quickly rebounded to see a nearly 0.5% gain at $917.05, but it fell back off into the close and ended with a loss of 0.5%.

Oil rose on worries over Iran's nuclear program and what Israel may do about it. The US Dollar index rose slightly as July's payrolls did not fall quite as much as expected.

Down 51,000 against 75,000 forecast, the Non-Farm Payrolls release saw the Bureau for Labor Studies add around 4,000 jobs to the number with its net birth/death adjustment.

Back in the markets, silver saw a four cent gain at $17.75 before it fell all the way to $17.24 in initial reaction to the jobs data and then followed Gold back near unchanged by midmorning in New York, but it also fell back off into the close and ended with a loss of 1.47%.

For the week Gold lost 1.9%. Silver added 0.75%.

"The Dollar is showing a bit of strength," says Julian D.W. Phillips of, "which is why gold is continuing weak, but the main reason Gold has fallen lately is because there has been a 30-tonne sale of gold by one of the Central Bank Gold Agreement signatories last week who probably sold some more this week.

"We believe this selling will now have stopped, but on the back of it long-term investors sold 36 tonnes, before picking up 10 tonnes earlier this week. This has left the market churning waiting for direction.

"The time for selling, however, is running out as it is less than a month before the physical gold season begins again."

The Gold Price in Euros fell Friday to about €584, platinum lost $110 to $1640.50, and copper fell nearly nine cents to about $3.63.

Gold and silver equities saw slight gains about an hour into trade, but they then fell back off for most of the rest of trade and ended with over 3% losses.

Treasuries rose as Friday's economic data pretty much confirmed that the US Federal Reserve will not raise US interest rates next week, leaving them well below the cost of inflation. (Find out What Sub-Zero Rates Mean for Gold here...) The Dow, Nasdaq, and S&P traded mostly slightly lower on worries over the economy as payrolls fell again and oil prices rose.

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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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