09 January 2015
Gold Snaps Two-Day Drop Ahead of Jobs Report as Dollar Retreats
(Bloomberg) - Gold halted two days of losses to head for the biggest weekly gain in a month, before the release of monthly data on U.S. employment that will provide direction on the outlook for borrowing costs in the world’s largest economy.
Bullion for immediate delivery advanced as much as 0.4 percent to $1,213.18 an ounce, and traded at $1,211.45 by 11:31 a.m. in Singapore, according to Bloomberg generic pricing. The metal climbed on Jan. 6 to $1,223.19, the highest level since Dec. 16, as oil’s retreat to less than $50 a barrel sent global equities tumbling, and is 1.9 percent higher this week.
The Bloomberg Dollar Spot Index fell today after closing yesterday at a record high as Federal Reserve of Minneapolis President Narayana Kocherlakota said raising interest rates this year would hinder a recovery in inflation. The data today is expected to show employers added 200,000 or more jobs for an 11th month, supporting the case for raising rates, which Chair Janet Yellen has said is unlikely to happen before late April.
“While the expectation for inflation is to remain low, a delay in ’liftoff’ would be viewed as positive by the bullion market,” James Steel, an analyst at HSBC Securities (USA) Inc., wrote in a note. “The employment numbers are generally influential in determining near-term gold prices. A good number, near or above consensus, could weigh on gold.”
Gold for February delivery gained 0.2 percent to $1,211.40 an ounce on the Comex in New York after falling for two days. Futures rose on Jan. 6 to $1,223.30, the highest since Dec. 16, and are set to halt three weeks of losses. Assets in the SPDR Gold Trust, the largest bullion-backed exchange-traded product, were unchanged yesterday at the lowest level since September 2008.
Silver for immediate delivery increased 0.1 percent to $16.3819 an ounce, on course to snap a three-week drop after prices rose on Jan. 6 to $16.7091, the highest since Dec. 15.
Spot platinum added 0.2 percent to $1,221.25 an ounce, heading for a weekly advance. Palladium rose 0.3 percent to $794 an ounce, trimming a second week of declines.