Gold Fluctuates on Upbeat Jobs Report
Gold for June delivery at the COMEX division of the CME was rising $2.50 to $1,470.10 an ounce. The gold price traded as high as $1,487.20 and as low as $1,455.40 an ounce, while the spot price was increasing $7.30, according to Kitco's gold index.
The Bureau of Labor Statistics reported Friday morning that nonfarm payrolls rose in April by 165,000, while the unemployment rate ticked slightly lower to 7.5%. Consensus among economists polled by Thomson Reuters was looking for 145,000 new jobs and an unchanged unemployment rate at 7.6%.
"The S&P is up 14 handles right now, and rightfully so as the jobs report number is the main catalyst main driver of the whole thing," Mihir Dange, options trader at Graphite Capital, said ahead of the market opening.Gold received a boost during Thursday's trading session as a rate cut by the European Central Bank and the Federal Reserve's statement that it main be open to additional monetary stimulus suggested to traders that central banks would continue to add liquidity to the economy. Since gold's 13% drop across the consecutive trading sessions on April 12 and April 15, the yellow metal has retraced about half of its losses, but many traders and analysts are unconvinced that gold has found a firm trading range and technical base of support. "Gold is trying to find its footing here amidst an environment where China and Europe are slowing and central bank inflation targets are undershooting in the Western hemisphere," Sonny Tahiliani, managing director of precious metals at MacroMoves Capital Advisors, said in an email. Silver prices for July delivery was adding 21 cents to $24.04 an ounce, while the U.S. dollar index was slipping 0.17% to $82.07. Gold mining stocks were mostly higher on Friday. Shares of Goldcorp (GG - Get Report) were up 3%, while shares of Royal Gold (RGLD - Get Report) were gaining 2.1%. Among volume leaders, Barrick Gold (ABX - Get Report) was ticking higher by 1.6%. Gold ETF SPDR Gold Trust (GLD) was adding 0.43%, while iShares Gold Trust (IAU) was up 0.42%. -- Written by Joe Deaux in New York. >Contact by Email. Follow @JoeDeaux
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