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Title: Gold Sheds 3% as US Employment Data Beats Forecast
Source:
CNBC
URL Source: http://www.cnbc.com/id/100865277
Published: Jul 5, 2013
Author: CNBC
Post Date: 2013-07-05 14:04:55 by Brian S
Keywords: None
Views: 4255
Comments: 11
Gold fell 3 percent on Friday, extending earlier losses as the dollar climbed after stronger-than-expected U.S. jobs data, which could tempt the Federal Reserve to start scaling back its monetary stimulus later this year. The U.S. non-farm payrolls report showed employers added 195,000 new jobs to their payrolls last month, while the unemployment rate held steady at 7.6 percent as more people entered the workforce. Economists had forecast new jobs of 165,000. The data could affect the timing of the U.S. central bank's expected scaling down of its $85 billion monthly bond purchases, the prospects of which has already triggered turbulence across major asset classes worldwide. Spot gold dropped by 2.7 percent to $1,216 an ounce and is set for a third consecutive week of losses. U.S. gold futures for August delivery fell 3 percent to $1,214. "After the strong U.S. numbers we are approaching the point in which the Fed will start to taper and as a consequence we fully expect that, if the U.S. economy continues to improve, you will see a further strengthening of the dollar, which is negative for the dollar-denominated gold price," Natixis analyst Nic Brown said. Gold posted its biggest quarterly loss on record, down 23 percent in the April-June period, with selling exacerbated by comments from Fed Chairman Ben Bernanke last month that the U.S. economy was recovering strongly enough for the central bank to begin tapering in the next few months. That would support a rise in interest rates, making gold less attractive. The dollar rose to a three-year high against a basket of major currencies, while the benchmark 10-year U.S. Treasury yield rose to its highest level since August 2011 at 2.67 percent earlier. (Read More: Gartman's 'Watershed' Shift on Gold) As gold pays no interest, the rise in returns from U.S. bonds and other markets is seen as negative for the metal. The metal, which staged a rebound from last Friday's near three-year low of $1,180.71 an ounce this week, had come under pressure after the European Central Bank signalled in the previous session that it could cut interest rates further, pressuring the euro against the dollar. "The euro is likely to remain weak, as the ECB will remain accommodative longer than the Fed... And when combined with relatively subdued inflation expectations on both sides of the Atlantic, this is gold bearish," VTB Capital said in a note. Gold Under Pressure Rapid outflows from gold exchange-traded products (ETPs) and softer-than-expected physical demand were also keeping gold prices under pressure. Gold ETPs holdings fell by $4.1 billion in June and $28.2 billion year-to-date, according to data from BlackRock. (Read More: Brighter Jobs Picture to Tip Fed Taper?) Indian consumption has fallen since the government imposed new import restrictions, while Chinese buyers are waiting on the sidelines for prices to fall further, or at least stabilise. Silver fell 3.6 percent to $19 an ounce. Platinum was down 1.2 percent at $1,325 an ounce while palladium rose 0.4 percent to $677 an ounce.
Under Pressure
Name Price Change %Change Volume GOLD Gold 1214.10 -37.80 -3.02% 203322 GOLD/USD Gold / US Dollar Spot 1214.40 -34.79 -2.79% --- SILV/USD Silver / US Dollar Spot 18.75 -0.76 -3.90% --- SILVER Silver 18.75 -0.95 -4.82% 49708 PALL/USD Palladium / US Dollar Spot 677.97 3.47 0.51% --- PLAT/USD Platinum / US Dollar Spot 1320.49 -18.01 -1.35% ---
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#1. To: Brian S (#0)
You libTURDS should ALL sell ALL of your gold right NOW! Oh yeah, libTURDS don't actually have any gold, you suck the gold out of other people. My bad.
Getting whacked, eh? At what price did you buy in at, $1800? LOL. Never swear "allegiance" to anything other than the 'right to change your mind'!
195,000 new jobs in the traditionally strong month of June is anemic for an economy which needs regular monthly job increases in excess of 200,000 for sustained growth.
Tell that to those supposed 'job creatin' rich, Jethro. They got what they wanted.
Almost every country in the Middle East is awash in oil, and we have to side with the one that has nothing but joos. Goddamn, that was good thinkin'. Esso posted on 2012-01-13 7:37:56 ET
LOL! Spoken as the true libTARD know nothing fool we all know you to be brianna! Anybody who looks at the PM group as an "investment" is a fool. The PM group including gold is about preservation of value fool. Always has been, always will be, fool. SOP is 10% or less of your portfolio in them as a hedge. I'm sure that a fool such as you has no grasp of "dollar cost averaging" either. Of course a welfare check getting parasite such as you has no "portfolio" do you brianna? ALL of my gold cost much less than $1000./ozt brianna. Soon, after this correction, I will start buying again. SELL all of your PMs NOW brianna! LOL!
You talk as if you were a 3rd grader... Grow up and perhaps people will take you seriously.
Never swear "allegiance" to anything other than the 'right to change your mind'!
Piss OFF you gibbering libTURD whore. "AND the horse you rode in on."
I'll advise you to quit interacting with a mentally unstable poster. Hope you are doing ok.
Then why are you posting to him freddy boy?
Tell them what? That your inbred progeny are too stupid to compete anymore?
That's not "fair"! Her porcine progeny are active elbow users when they are in line for their "bennies". NOBODY stands their ground at the trough as well as they do!
#2. To: who cares (#1)
I feel your pain...
#3. To: Brian S (#0)
#4. To: Thunderbird (#3)
195,000 new jobs in the traditionally strong month of June is anemic for an economy which needs regular monthly job increases in excess of 200,000 for sustained growth.
#5. To: Brian S (#2)
(Edited)
Getting whacked, eh? At what price did you buy in at, $1800? LOL.
#6. To: who cares (#5)
libTARD, brianna
#7. To: Brian S (#6)
#8. To: Brian S (#6)
#9. To: Fred Mertz (#8)
#10. To: mininggold (#4)
Tell that to those supposed 'job creatin' rich, Jethro.
#11. To: Thunderbird (#10)
Tell them what? That your inbred progeny are too stupid to compete anymore?
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