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Poor Nonfarm Payrolls Spur Rally of Metals

September 6, 2013 at 18:45 by Vladimir Vyun

Metals surged today as US nonfarm payrolls were significantly worse than market participants have anticipated. US employers added 169,000 jobs in August, while analysts have expected an increase by at least 178,000. What is more, the July figure got a massive negative revision from 162,000 to 104,000. It is true that the unemployment rate unexpectedly slipped from 7.4 percent to 7.3 percent, but this was because the number of surveyed people became smaller, not because there were less unemployed persons.

The negative data reduces chances for quantitative easing tampering by the Federal Reserve in September. It is still possible, but definitely less likely.

Precious metals outperformed industrial ones because of the situation in Syria. The threat of a war is bullish for precious metals, increasing demand for haven among investors, but it is not so good for industrial metals.

Futures for delivery of gold in December advanced $14.8 (1.08 percent) to $1,387.8 per troy ounce as of 18:44 GMT on COMEX today. Contract for silver surged as much as $0.6 (2.58 percent) to $23.86 per ounce. Copper was up $0.0145 (0.45 percent) to $3.2585 per pound.

If you have any questions and comments on the commodities today, use the form below to reply.

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