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NFP Boost Gold, Make Copper & Crude Oil Weaker

August 1, 2014 at 18:14 by Vladimir Vyun

Gold jumped today as US employment data missed forecasts. Meanwhile, copper and crude oil declined as market participants speculated that the news means that demand for energy and industrial metals will be limited.

US employers added 209,000 jobs in July. This figure was not really bad as economists think that growth above 200,000 is sufficient for stable economic recovery. Yet the actual reading was still below the 231,000 increase that had been expected and priced in, and this disparity affected markets significantly. Additionally, the unemployment rate ticked up by 0.1 percentage point to 6.2 percent, while no increase was expected by specialists.

On top of that, manufacturing data from China, while also not being really bad, was disappointing too. The HSBC manufacturing Purchasing Managers’ Index was at 51.7 in July, trailing the median analysts’ estimate of 52.0.

December futures for delivery of gold jumped 0.94 percent to $1,294.90 per troy ounce as of 18:06 GMT on COMEX today. September contract for copper declined 0.45 percent to $3.2165 per pound. Futures for WTI crude oil lost 0.68 percent to $97.50 per barrel on NYMEX. Brent crude was down 0.92 percent to $105.04 per barrel on ICE.

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