Gold prices fell slightly Friday as a mixed U.S. jobs report and continued unease about turmoil in Egypt did little to spur new refuge demand for the precious metal.
The most actively traded gold contract, for April delivery, settled down $4, or 0.3%, at $1,349 an ounce on the Comex division of the New York Mercantile Exchange.
The U.S. economy added 36,000 jobs in January, the Labor Department said Friday, much
Saturday, February 5, 2011
Gold retreats on Egypt report, dollar gain
Gold dropped on Friday as the dollar rallied and after an apparently unfounded television report about an announcement from Egypt sparked more speculation President Hosni Mubarak could be stepping down.
But gold remains on track for its first weekly gain in 2011 after U.S. employment rose far less than expected in January, and after Federal Reserve Chairman Ben Bernanke indicated easy monetary policy would stay in the near term.
Tom Pawlicki, precious metals and energy analyst at MF Global, said gold should benefit as a safe haven on fears that unrest in Egypt would spread across the Middle East despite rumors that Mubarak could resign.
"Since the report has come out, it instilled doubt in the market's mind so I don't know how bullish it can be," he said, referring to a possible drop in gold demand should Mubarak step aside now.
Traders said the rumor seemed to stem from a brief report on U.S. television station CNBC, but more than two hours later there was no news on Egyptian TV about any announcements or possible transition of power. There were no reports from other media outlets suggesting any imminent news from Egypt.
U.S. crude oil futures fell sharply as the report set off speculation that protests in Egypt would end soon. Foreign exchange and equities markets had minimal reactions.
Spot gold dropped 0.3 percent to $1,348.59 an ounce by 2:30 p.m. EST (1930 GMT). U.S. gold futures for April delivery fell $3.90 to $1,349.10.
Analysts said that even as U.S. jobs barely grew in January, gold failed to benefit further from the mixed payrolls report, which also showed that the unemployment rate fell to its lowest since April 2009.
"I think the market's confused," Credit Agricole analyst Robin Bhar said. "On the one hand we didn't get any rise to speak of in the payrolls, but we got a big fall in the unemployment rate, and a big gain in the manufacturing sector."
Bullion was also pressured as the dollar rose against the euro on the U.S. jobless number.
Gold is set for its first weekly gain in five weeks, having posted a strong session on Thursday after Bernanke warned that delays in raising the United States' debt limit could have "catastrophic" consequences, indicating monetary policy would stay accommodative.
HEAVY PRESSURE
The precious metal had faced heavy pressure last month, when bullion posted its first monthly decline in six months after signs that the global economy had started the year on a solid footing with easing worries about Europe's debt crisis.
However, the strength of the economic recovery remains a major question mark for gold, analysts said.
"The medium-term factors for gold -- currency debasement, sovereign debt, inflation -- haven't disappeared and will come back to underpin the market," Bhar said. "But at the moment, why buy gold? There are lots of better things to buy."
Asian buyers remained largely absent, with the market quiet in China, Hong Kong and Singapore during the Lunar New Year holiday there and Indian consumers put off fresh buying by Thursday's price volatility.
Gold holdings of exchange-traded funds inched higher, with those of the largest, New York's SPDR Gold Trust, edging up just over two tonnes on Thursday.
Silver gained 0.1 percent to $28.94 an ounce. Holdings of the largest silver ETF, the iShares Silver Trust, fell more than 30 tonnes to their lowest since November on Thursday.
Platinum group metals touched multi-year highs, with platinum reaching its loftiest level since July 2008 at $1,858.50 an ounce and palladium a 10-year peak at $831.
Platinum was later up 0.3 percent at $1,841.24 and palladium down 0.3 percent at $814.47. (Additional reporting by Jan Harvey in London; Editing by Dale Hudson)
But gold remains on track for its first weekly gain in 2011 after U.S. employment rose far less than expected in January, and after Federal Reserve Chairman Ben Bernanke indicated easy monetary policy would stay in the near term.
Tom Pawlicki, precious metals and energy analyst at MF Global, said gold should benefit as a safe haven on fears that unrest in Egypt would spread across the Middle East despite rumors that Mubarak could resign.
"Since the report has come out, it instilled doubt in the market's mind so I don't know how bullish it can be," he said, referring to a possible drop in gold demand should Mubarak step aside now.
Traders said the rumor seemed to stem from a brief report on U.S. television station CNBC, but more than two hours later there was no news on Egyptian TV about any announcements or possible transition of power. There were no reports from other media outlets suggesting any imminent news from Egypt.
U.S. crude oil futures fell sharply as the report set off speculation that protests in Egypt would end soon. Foreign exchange and equities markets had minimal reactions.
Spot gold dropped 0.3 percent to $1,348.59 an ounce by 2:30 p.m. EST (1930 GMT). U.S. gold futures for April delivery fell $3.90 to $1,349.10.
Analysts said that even as U.S. jobs barely grew in January, gold failed to benefit further from the mixed payrolls report, which also showed that the unemployment rate fell to its lowest since April 2009.
"I think the market's confused," Credit Agricole analyst Robin Bhar said. "On the one hand we didn't get any rise to speak of in the payrolls, but we got a big fall in the unemployment rate, and a big gain in the manufacturing sector."
Bullion was also pressured as the dollar rose against the euro on the U.S. jobless number.
Gold is set for its first weekly gain in five weeks, having posted a strong session on Thursday after Bernanke warned that delays in raising the United States' debt limit could have "catastrophic" consequences, indicating monetary policy would stay accommodative.
HEAVY PRESSURE
The precious metal had faced heavy pressure last month, when bullion posted its first monthly decline in six months after signs that the global economy had started the year on a solid footing with easing worries about Europe's debt crisis.
However, the strength of the economic recovery remains a major question mark for gold, analysts said.
"The medium-term factors for gold -- currency debasement, sovereign debt, inflation -- haven't disappeared and will come back to underpin the market," Bhar said. "But at the moment, why buy gold? There are lots of better things to buy."
Asian buyers remained largely absent, with the market quiet in China, Hong Kong and Singapore during the Lunar New Year holiday there and Indian consumers put off fresh buying by Thursday's price volatility.
Gold holdings of exchange-traded funds inched higher, with those of the largest, New York's SPDR Gold Trust, edging up just over two tonnes on Thursday.
Silver gained 0.1 percent to $28.94 an ounce. Holdings of the largest silver ETF, the iShares Silver Trust, fell more than 30 tonnes to their lowest since November on Thursday.
Platinum group metals touched multi-year highs, with platinum reaching its loftiest level since July 2008 at $1,858.50 an ounce and palladium a 10-year peak at $831.
Platinum was later up 0.3 percent at $1,841.24 and palladium down 0.3 percent at $814.47. (Additional reporting by Jan Harvey in London; Editing by Dale Hudson)
Gold ends lower
SAN FRANCISCO (MarketWatch) — Gold futures settled lower Friday, weighed down by expectations Egypt’s president may be getting closer to his resignation, a stronger dollar, and a previous session’s rally that left the metal vulnerable to a price correction ahead of the weekend.
Copper notched a fresh record high, settling at $4.58 a pound. Platinum settled at its best since July 2008.
Gold for April delivery /quotes/comstock/21e!f:gc\h11 (GCH11 1,349, -4.00, -0.30%) /quotes/comstock/21e!f:gc\h11 (GCH11 1,349, -4.00, -0.30%) settled $4 lower, or 0.3%, at $1,349 an ounce on the Comex division of the New York Mercantile Exchange. Gold advanced 0.6% on the week.
The metal dipped in and out of positive territory earlier. It took a definite turn for the worse, however, on reports the U.S. government was pressuring Hosni Mubarak to resign.
“Some geopolitical risk is coming off based on the reports Mubarak may resign,” said Matt Zeman, a trader at LaSalle Futures Group in Chicago.
A stronger dollar and, more broadly, a sense that positive global macroeconomic news may bring a cycle of monetary tightening also made the day tougher for gold, he added.
April gold rallied 1.6% on Thursday, settling at its best since Jan. 19. On the week, the metal
Earlier Friday, the Labor Department reported the unemployment rate fell unexpectedly to 9% in January.
Economists surveyed by MarketWatch had expected an uptick to 9.5% compared to 9.4% in December.
Copper notched a fresh record high, settling at $4.58 a pound. Platinum settled at its best since July 2008.
Gold for April delivery /quotes/comstock/21e!f:gc\h11 (GCH11 1,349, -4.00, -0.30%) /quotes/comstock/21e!f:gc\h11 (GCH11 1,349, -4.00, -0.30%) settled $4 lower, or 0.3%, at $1,349 an ounce on the Comex division of the New York Mercantile Exchange. Gold advanced 0.6% on the week.
The metal dipped in and out of positive territory earlier. It took a definite turn for the worse, however, on reports the U.S. government was pressuring Hosni Mubarak to resign.
“Some geopolitical risk is coming off based on the reports Mubarak may resign,” said Matt Zeman, a trader at LaSalle Futures Group in Chicago.
A stronger dollar and, more broadly, a sense that positive global macroeconomic news may bring a cycle of monetary tightening also made the day tougher for gold, he added.
April gold rallied 1.6% on Thursday, settling at its best since Jan. 19. On the week, the metal
Earlier Friday, the Labor Department reported the unemployment rate fell unexpectedly to 9% in January.
Economists surveyed by MarketWatch had expected an uptick to 9.5% compared to 9.4% in December.
Gold 2011
Gold, Au, has long been prized for its beauty, resistance to chemical attack, and workability. Because it occurs as a native metal, has a relatively low melting point (1063 oC.), and is malleable, early man easily separated it from rock and cast or hammered it into beautiful designs. Gold serves as a monetary reserve and is used in jewelry, scientific apparatus, dentistry, and photographic processes.
Gold crystallizes in the cubic system, forming octahedral and dodecahedral crystals, often distorted into dendritic or leafy growths. Cubic crystals are rare. A soft metal (hardness 2.5-3), gold can be made harder by alloying it with copper, silver, and other metals. Most gold contains some silver. Pure gold is very dense, with a specific gravity of 19.3, decreasing to 15.6 as silver connate increases. Gold is the most malleable and ductile substance known. It can be flattened out to less than .00001 of an inch (less than .000065 cm) and a 1 oz. (28 gram) mass can stretch out to a distance of over 50 miles (75 kilometers). Gold is also one of the most resistant metals. It won't tarnish, discolor, crumble, or be affected by most solvents. This adds on to the uniqueness of this mineral.
The mineral Gold is almost always mixed with a small amount of silver, and sometimes contains traces of copper and iron. A Gold nugget is usually 70 - 90 percent gold, and the remainder mostly silver. The color of pure Gold is bright golden yellow, but the greater the silver content, the whiter the color. Most Gold is mined from ore, containing tiny amounts of Gold in the ore. The ore is brown, iron-stained rock or massive white Quartz. To extract the gold, the ore is crushed, then the gold is separated from the ore by various methods. Gold is less commonly found as nuggets. Nuggets are formed when erosion causes a large piece of Gold to separate from its mother rock, and then gets carried away into a stream or river. The flowing water tumbles the Gold, giving each specimen a distinct shape. The Gold eventually settles at the bottom of the water, and due to its heaviness remains there. Other nuggets also get caught in the same area, forming a placer deposit. An even rarer form of Gold is as crystals, which are cubic, octahedral, and dodecahedral. Even when the Gold occurs in crystals, they are distorted or are almost microscopic. Although Gold is a rare mineral, it has many scattered occurrences. Most of these occurrences usually lack quality and quantity in regard to Gold. However, certain regions contribute greatly to the gold market. Some of the best known Gold producing regions are: California, Colorado, Ontario, Mexico, Australia, Hungary, and South Africa (the largest producer). Some famous American mines include the Empire Mine and Red Ledge Mine in Grass Valley (Nevada County), California. Very nice crystals and crusts have been found near Ouray, Ouray Co., and in Red Mountain Pass, San Juan Co., Colorado. The Hollinger mine, along with other mines in that area of the Porcupine District, have produced large amounts of Gold.
Update by Karl Harrison
(Molecule of the Month for September 2000 )
Gold crystallizes in the cubic system, forming octahedral and dodecahedral crystals, often distorted into dendritic or leafy growths. Cubic crystals are rare. A soft metal (hardness 2.5-3), gold can be made harder by alloying it with copper, silver, and other metals. Most gold contains some silver. Pure gold is very dense, with a specific gravity of 19.3, decreasing to 15.6 as silver connate increases. Gold is the most malleable and ductile substance known. It can be flattened out to less than .00001 of an inch (less than .000065 cm) and a 1 oz. (28 gram) mass can stretch out to a distance of over 50 miles (75 kilometers). Gold is also one of the most resistant metals. It won't tarnish, discolor, crumble, or be affected by most solvents. This adds on to the uniqueness of this mineral.
The mineral Gold is almost always mixed with a small amount of silver, and sometimes contains traces of copper and iron. A Gold nugget is usually 70 - 90 percent gold, and the remainder mostly silver. The color of pure Gold is bright golden yellow, but the greater the silver content, the whiter the color. Most Gold is mined from ore, containing tiny amounts of Gold in the ore. The ore is brown, iron-stained rock or massive white Quartz. To extract the gold, the ore is crushed, then the gold is separated from the ore by various methods. Gold is less commonly found as nuggets. Nuggets are formed when erosion causes a large piece of Gold to separate from its mother rock, and then gets carried away into a stream or river. The flowing water tumbles the Gold, giving each specimen a distinct shape. The Gold eventually settles at the bottom of the water, and due to its heaviness remains there. Other nuggets also get caught in the same area, forming a placer deposit. An even rarer form of Gold is as crystals, which are cubic, octahedral, and dodecahedral. Even when the Gold occurs in crystals, they are distorted or are almost microscopic. Although Gold is a rare mineral, it has many scattered occurrences. Most of these occurrences usually lack quality and quantity in regard to Gold. However, certain regions contribute greatly to the gold market. Some of the best known Gold producing regions are: California, Colorado, Ontario, Mexico, Australia, Hungary, and South Africa (the largest producer). Some famous American mines include the Empire Mine and Red Ledge Mine in Grass Valley (Nevada County), California. Very nice crystals and crusts have been found near Ouray, Ouray Co., and in Red Mountain Pass, San Juan Co., Colorado. The Hollinger mine, along with other mines in that area of the Porcupine District, have produced large amounts of Gold.
Update by Karl Harrison
(Molecule of the Month for September 2000 )
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