Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Gold Rebounds as Tapering Concerns Ease on U.S. Jobs Data

Don't Miss Out —
Follow us on:

Aug. 2 (Bloomberg) -- Gold futures capped the first weekly decline in a month as better-than-expected U.S. economic data increased speculation that the Federal Reserve may slow the pace of fiscal stimulus.

Claims for jobless benefits in U.S. fell to a five-year low, the Labor Department reported yesterday and manufacturing rose in July at the fastest pace in more than two years, a private group reported yesterday, while employers added fewer workers than forecast last month, a report showed today. Prices have slumped 22 percent this year as the dollar gained 4.3 percent against 10 currencies. The metal also retreated as some investors lost faith in bullion as a store of value.

“Earlier this week we saw economic data that pointed towards a recovery, and that coupled with a strong dollar kept gold under pressure,” Tom Power, a senior commodity broker at R.J. O’Brien & Associates in Chicago, said in a telephone interview. “Today’s data was positive for gold, but not enough to turn the direction of the market.”

Gold futures for December delivery fell 0.1 percent to settle at $1,310.50 an ounce at 1:43 p.m. on the Comex in New York, after dropping as much as 2.2 percent to $1,282.40, the lowest since July 18. Prices rebounded after payrolls in the U.S. rose by 162,000, less than estimated, and the jobless rate dropped to 7.4 percent from 7.6 percent. The precious metal lost 0.9 percent this week, after rallying the previous three weeks.

Bullion more than doubled from 2008 to a record $1,923.70 in September 2011 as the central bank bought more than $2 trillion of debt. The Fed currently buys $85 billion of bonds a month.

Silver Jumped

Silver futures for September delivery jumped 1.5 percent to $19.912 an ounce in New York, the biggest gain since July 22, pushing the precious metal to a 0.7 percent increase for the week.

On the New York Mercantile Exchange, platinum futures for October delivery gained 0.5 percent to $1,451.50 an ounce.

Palladium futures for September delivery slipped 0.3 percent to $729.70 an ounce.

To contact the reporter on this story: Debarati Roy in New York at droy5@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.