Friday, February 03, 2012

Gold futures fall, end three-session streak

Gold futures pared losses Friday, after dropping as much as $23 U.S. an ounce, but were still set to end a three-session climb as a bigger-than-expected jump in the number of U.S. jobs added in January dulled investor demand for the metal.

Gold for April delivery declined by $14, or 0.8%, to $1,745.40 U.S. an ounce on the Comex division of the New York Mercantile Exchange. Earlier, it dropped by as much as $23.80 to touch a low of $1,735.50 U.S.

The metal had gained $9.80 to $1,759.30 U.S. an ounce on Thursday, the highest close for gold since mid-November. It has also tallied a three-session gain of 1.4%.

The losses for the precious metal on Friday came after the U.S. Labor Department reported that 243,000 jobs were added in January and the unemployment rate dipped to 8.3%.

Economists, for example, predicted the U.S. would add a seasonally adjusted 121,000 jobs last month, with an unemployment rate of 8.5%.

Separately Friday, the U.S. Commerce Department reported that factory orders rose 1.1% in December. Economists polled by MarketWatch had expected a 1.4% rise, but the report was bolstered by an upward revision to November. Orders were revised to a 2.2% increase from an initially reported 1.8% rise.

The upbeat data helped lure investors to the U.S. stock market, sending the Dow Jones Industrial Average up by more than 1%.

At last check, silver for March delivery fell by 31 cents U.S., or 0.9%, to trade at $33.86 U.S. an ounce.

In the wider metals complex, copper was the lone gainer among the major metals, with the positive U.S. economic data feeding the potential for increased demand for industrial metals.

Copper's March contract added nine cents, or 2.4%, at $3.87 U.S. per pound. If prices close around this level, they'll log the highest settlement in a week.

Copper trades more than 10% higher year to date, though analysts were wary of the metal's outlook, especially as China continues to be concerned about overheated growth.

Other metals fell along with gold Friday.

Platinum for April delivery slipped $3.20, or 0.2%, to $1,626.70 U.S. an ounce and March palladium traded at $707.15 U.S. an ounce, down 50 cents, or 0.1%.