Gold climbs as US job creation moderates, dollar dips

Otmane El Rhazi from The Bullion Desk.

Gold finished higher for the first time in a week as US unemployment numbers showed that there is still some slack in the labor market.

Gold for August delivery on the Comex division of the New York Mercantile Exchange rose $2.30 to close at $1,188.00 per ounce. Trade ranged from $1,179.60 to $1,192.00.

US pending home sales rose 3.4 percent month-on-month in April, the highest level in nine years, but weekly unemployment claims at 282,000 were above the forecast of 272,000

“The labor market continues to improve, but as [Federal Reserve] chair [Janet] Yellen noted in her comments last week, ‘we are not there yet,’” Lindsey Piegza, chief economist at Sterne Agee, said. “Job creation has moderated and there remains a significant amount of slack in the labor market exemplified by a still-heightened level of discouraged workers and those employed part-time for economic reasons.”

Market participants will now shift their focus to tomorrow’s release of first quarter US GDP, which is expected to be negative after a particularly harsh winter.

“Although growth revisions to the quarter could be considered ancient history by now, the release will still be significant, since if the number is revised downward, the economy will have much more ground to make up if it is to live up to the Fed’s somewhat ambitious growth target for 2105,” Edward Meir, an analyst at INTL FCStone said.

In US equities, the Dow Jones industrial average and S&P were each down 0.4 percent, while the euro was 0.3 percent stronger at $1.0936 against the dollar.

In Europe, the DAX, CAC 40 and FTSE 100 chalked up further losses on Thursday, falling between 0.2 and 0.7 percent on concerns that Greece remains some way from a bailout deal. The debt-ridden country must make the first of four payments due to the IMF next month on June 5.

As for the other precious metals, Comex silver for July delivery was last up more than four cents at $16.69 per ounce. Trade has ranged from $16.540 to $16.775.

Platinum futures for July delivery on the Nymex declined $1.00 at $1,118 per ounce, while the most-actively traded palladium contract was at $786.00 per ounce, up $1.00.

(Editing by Tom Jennemann)

The post Gold climbs as US job creation moderates, dollar dips appeared first on The Bullion Desk.