EDITOR: | December 4th, 2015

Gold Heads for First Weekly Gain Since October Before Jobs Data

| December 04, 2015 | No Comments
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December 4, 2015 (Source: Bloomberg) — Gold headed for the first weekly gain since October as investors awaited the U.S. jobs report, the most-watched piece of data before the Federal Reserve’s meeting later this month.

Bullion for immediate delivery was little changed at $1,063.48 an ounce at 11:06 a.m. in London, according to Bloomberg generic pricing. The metal climbed 0.6 percent this week, ending a six-week stretch of losses, as the European Central Bank cut its deposit rate, sparking a selloff in equities and boosting safe-haven demand. Prices are still near a five-year low.

“Gold will be very sensitive to today’s job report,” Helen Lau, an analyst at Argonaut Securities (Asia) Ltd, said by e-mail. “Only if the payrolls data come significantly below expectation and there is a downward revision on the October number, then the rate hike may be postponed. Otherwise, the expectation of a first rate hike in December is pretty much universal.”

More than $500 billion was erased from the value of global bonds and equities worldwide on Thursday amid disillusionment with the ECB’s decision, which involved a rate cut and an extension in asset purchases. Even so, investors are generally bearish on gold and have withdrawn assets from exchange-traded funds backed by the metal almost every day in the past month.

Holdings in gold ETPs fell dropped 2.7 metric tons to 1,470.79 tons on Thursday, data compiled by Bloomberg show. Assets are at the lowest level since February 2009.

Spot silver rose 0.2 percent to $14.1365 an ounce. Platinum and palladium rallied more than 1 percent.


Raj Shah

Editor:

Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>


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