Gold Posts Weekly Loss Even After Jumping on Jobs Miss

by Christopher Freeburn | August 2, 2013 4:23 pm

[1]Gold fell sharply in early trading on Friday, but rebounded after the government released a weaker-than-expected report on U.S. hiring. Still, the metal finished the session with a fractional loss. It closed out the week down almost 2%, its largest weekly decline in more than a month.

The Labor Department said that non-farm U.S. payrolls rose by 162,000 last month. That was far below the 185,000 new jobs that economists were expecting[2]. Gold, which had dropped about 2% prior to the report’s release, quickly recovered almost all of its loss on the news. Slowing job creation could pressure the Federal Reserve into delaying any effort to reduce its monthly bond buying, boosting the metal’s appeal.

Gold futures for December delivery slipped 0.1% to $1,310.20 per ounce Friday, according to CME Group[3]. Gold traded as high as $1,318 and as low as $1,282.40. Gold bullion closed in London at $1,310, according to BullionVault[4].

Silver futures for December delivery rose 1.5% $19.96 per ounce. Friday’s high for silver was $20.30, while the low was $19.25.

Gold and silver funds were mixed in Friday trading.

• The SPDR Gold Trust (GLD[5]) slipped 0.2%.
• The iShares Gold Trust (IAU[6]) also fell 0.2%.
• The iShares Silver Trust (SLV[7]) climbed 0.8%.

Gold and silver mining ETFs sank during the day.

• The Market Vectors Gold Miners ETF (GDX[8]) slid 2.2%.
• The Market Vectors Junior Gold Miners ETF (GDXJ[9]) dropped 1.5%.
• The Global X Silver Miners ETF (SIL[10]) dipped 0.3%.

Gold mining shares waned on Friday.

• Agnico-Eagle Mines (AEM[11]) dropped 3.4%.
• Barrick Gold (ABX[12]) fell 0.8%.
• Eldorado Gold (EGO[13]) slid 1.9%.
• Goldcorp (GG[14]) also declined 1.9%.
• Kinross Gold (KGC[15]) dipped 0.4.
• Newmont Mining (NEM[16]) moved down 2.7%.
• NovaGold Resources (NG[17]) decreased 2.3%.
• Yamana Gold (AUY[18]) slipped 0.2%.

Silver mining shares stumbled during the day.

• Coeur d’Alene Mines (CDE[19]) edged down 0.6%.
• Hecla Mining (HL[20]) slumped 1.6%.
• Pan American Silver (PAAS[21]) also declined 1.6%.
• Silver Wheaton (SLW[22]) fell 1.1%.
• Silver Standard Resources (SSRI[23]) sank 4%.

As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[24] contributed to this report.

Source URL: https://investorplace.com/2013/08/gold-posts-weekly-loss-despite-weak-jobs-boost/

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