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Poor US Employment Data Spurs Oil & Precious Metals

December 4, 2010 at 1:05 by Vladimir Vyun

Crude oil and precious metals, including gold, silver and palladium, gained after a report showed that US employers added fewer jobs than expected and unemployment rate in the US unexpectedly rose, decreasing appeal of the dollar and boosting demand for commodities. Nonfarm payrolls in the US grew by 39,000 jobs in November, compared to the expected value of 143,000 and the growth in October by 172,000. Unemployment rate rose to 9.8 percent, while it was expected to remain unchanged at 9.6 percent.

Poor employment data sparked a new wave of criticism of quantitative easing and fueled concerns about US economy. The Dollar Index, which tracking greenback versus six currencies of major US trading partners, fell as much as 1.1 percent. A decline of the dollar increased attractiveness of commodities. The Thomson Reuters/Jefferies CRB Index of 19 commodities rose 1.3 percent to 316.16, the highest level since November 10th.

January delivery for crude oil jumped $1.19 to $89.19 per barrel on NYMEX. February futures for gold delivery rose $16.90 (1.2 percent) to $1,406.20 as of 14:15 on COMEX. March futures for silver delivery went up $0.699 (2.4 percent) to $29.271 per ounce. March futures for palladium delivery climbed $6.40 (0.8 percent) to $770.10 per ounce on NYMEX.

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