Breaking News

Gold erases losses on solid data in whipsaw trading session

CommoditiesMar 08, 2013 01:36PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Investing.com - Gold prices erased losses sustained earlier upon news that U.S. hiring far outpaced expectations in February, which sparked demand for the U.S. dollar.

Gold and the dollar normally trades inversely with one another.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were up 0.07% at USD1,576.20 a troy ounce in U.S. trading on Friday, up from a session low of USD1,560.60 and down from a high of USD1,582.50 a troy ounce.

Gold futures were likely to test support USD1,554.80 a troy ounce, the low from Feb. 21, and resistance at USD1,1584.80, Thursday's high.

Gold prices plunged after the Bureau of Labor Statistics reported earlier that U.S. economy added a net 236,000 nonfarm payrolls in February, way more than an expected 160,000 increase and up above 119,000 reported in January.

The U.S. private sector added 246,000 jobs, beating expectations for a 167,000 increase, following January's 140,000 rise.

The headline unemployment rate fell to 7.7% in February from 7.9% in January, beating analysts' calls for the rate to remain unchanged.

The data came after the Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits fell by 7,000 to 340,000 last week, defying expectations for an increase of 8,000 to 355,000.

The numbers sparked heavy demand for dollars on sentiment the Federal Reserve will soon consider winding down stimulus programs designed to spur recovery by flooding the economy with liquidity in a way that encourages investing and hiring.

Stimulus tools, including the Fed's monthly USD85 billion monthly bond-buying program known as quantitative easing, weaken the dollar as side effects, and Friday's jobs report stoked sentiments that such programs may wrap up sooner rather than later.

Gold plunged upon release of the data while the dollar surged, though the precious metal quickly rebounded back into positive territory after investors began to view the metal as oversold.

Elsewhere on the Comex, silver for May delivery was up 0.53% and trading at USD28.962 a troy ounce, while copper for May delivery was down 0.31% and trading at USD3.510 a pound.

Gold erases losses on solid data in whipsaw trading session

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email