Jobs Report Sinks Gold

Among the precious metals miners, Matrix Research increased its stock rating on Newmont Mining(NEM Quote) to buy from hold. Shares were up 0.5% in the afternoon.

In base metals, Comex copper contracts for December delivery closed up 8.85 cents at $3.3885 a pound.

Meanwhile, Mitsui Bussan Commodities says it expects copper prices to dip in 2007 to end the year at $2.61 a pound in the spot market, and will average $2.83 for the whole year.

The futures broker predicts a slight surplus for copper and notes that "tidal wave" of hedge funds might "balk at negative returns," and bail out of their positions.

Across the broader metals complex Mitsui is forecasting that supply will run slightly ahead of demand during the second half of 2007.

Among the major metal producers, Prudential Equity Group upped its ratings on Freeport McMoRan Copper & Gold(FCX Quote) and Rio Tinto(RTP Quote) to overweight from neutral.

Prudential also reiterated its overweight rating on U.S. copper miner Phelps Dodge(PD Quote) and hiked the stock price target to $170 from $110. The brokerage continues to recommend underweighting behemoth BHP(BHP Quote).