Gold Makes gain as focus on NFP Precious metals built on recent gains in quiet Wednesday morning trading, with gold adding almost one percent. Spot metal was last up $11.75 at $1,264.75/1,265.55 per ounce – it has gained $85 or more than seven percent since hitting $1,180 on Friday. “Gold extended Friday’s rally breaking back over $1,250 per ounce in thin trading dominated by short covering and potential market concerns that the Fed’s QE tapering may not be severe or imminent,” analyst said. “Given the link between the unemployment rate trajectory and the end of asset purchases, our economists believe a September tapering is likely, and jobs data remain a key data point for gold prices,” others said. In terms of the metals fundamentals,3% of gold producers are on a quarterly basis is cash-negative below $1,200 excluding sustaining capital expenditure. This figure rises to 14 percent if a $200 allowance is made for capital expenditure. “By either measure, nearly half of the loss-making mines are in South Africa, a country which last year contributed 153 tonnes or six percent of overall mine supply,” analyst added. Adding to the recent strength in gold, the dollar slipped back against the euro, with the single currency last at 1.302, up about half a cent. The Indian rupee has also gained relative strength, climbing 0.1 to 59.48 to the dollar. In equity markets, the FTSE 100 slipped 0.2 percent while the Dax and the CAC 40 both drifted around 0.8 percent lower In the rest of the precious metals, silver fell four cents to $19.61/19.66 per ounce and palladium slipped $1 to $683/689 but platinum gained $3 to 1,376/1,381.
Posted on: Wed, 03 Jul 2013 07:22:02 +0000
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