A positive report on U.S. hiring renewed investor fears that the Federal Reserve could begin tapering its monthly bond-buying, sending gold down sharply in Friday trading. The metal posted a 2.2% decline for the week.
The Labor Department announced that the economy generated 204,000 non-farm jobs in October and revised the number of jobs created in August and September upward by 60,000. That surprised economists who had expected the lengthy government shutdown to weaken hiring. Most economists were looking for about 120,000 new jobs last month. The Fed has signaled that it will not reduce stimulus until it sees sustained recovery in the U.S. jobs market.
Gold futures for December delivery dropped 1.8% to $1,284.60 per ounce on Friday, according to CME Group. Gold traded as high as $1,313.40 and as low as $1,280.50. Bullion closed in London at $1,291, according to BullionVault.
Silver futures for December slid 1.6% to $21.32 per ounce. Friday’s high for silver was $21.91, while the low was $21.25.
Metal funds declined in Friday trading.
- The SPDR Gold Shares (GLD) fell 1.5%.
- The iShares Gold Trust (IAU) sank 1.4%.
- The iShares Silver Trust (SLV) dipped 0.7%.
Mining ETFs were mixed during the day.
- The Market Vectors Gold Miners ETF (GDX) rose 0.6%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) gained 0.8%.
- The Global X Silver Miners ETF (SIL) slid 0.3%.
Gold stocks were also mixed on Friday.
- Agnico-Eagle Mines (AEM) climbed 2.9%.
- Barrick Gold (ABX) edged up 0.1%.
- Eldorado Gold (EGO) fell 1.1%.
- Goldcorp (GG) rose 0.7%.
- Kinross Gold (KGC) moved up 0.5%.
- Newmont Mining (NEM) added 0.8%.
- NovaGold Resources (NG) was flat.
- Yamana Gold (AUY) sank 0.4%.
Silver mining shares mostly gained during the day.
- Coeur d’Alene Mines (CDE) added 0.6%.
- Hecla Mining (HL) climbed 1.3%.
- Pan American Silver (PAAS) rose 1.9%.
- Silver Wheaton (SLW) dipped 0.3%.
- Silver Standard Resources (SSRI) surged 4%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.