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Metals React Differently to NFP

November 9, 2013 at 2:20 by Vladimir Vyun

US nonfarm payrolls shocked the metal market as they were much better than traders have counted on. US employers added as much as 204,000 jobs in October, compared to the forecast of 121,000. The small increase of the unemployment rate to 7.3 percent did not affect the market sentiment much. The positive employment followed yesterday’s signs of accelerating economic growth.

Precious and industrial metals demonstrated a vastly different reaction to the news. Copper rallied on hopes that improving economy means higher demand for the metal. At the same time, gold slumped on concerns that positive developments in the economy may spur the Federal Reserve to tamper its monetary stimulus earlier.

December futures for delivery of copper rose 0.2 percent to close at $3.254 per pound on COMEX. December gold slumped as much as $23.9 (1.83 percent) to $1,284.6 per troy ounce.

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