Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


Precious Metals Retreat on US Nonfarm Payrolls

October 5, 2012 at 23:09 by Vladimir Vyun

Precious metals were down today after the release of US nonfarm payrolls. Gold, silver, platinum and palladium climbed yesterday as central banks of developed nations stimulated their economies, boosting prospects for the metals as a hedge against inflation. Today, though, the commodities backed off.

US nonfarm payrolls showed robust growth by 144,000 jobs last month. What is even more important, the unemployment rate went down to 7.8 percent in September from 8.1 percent in August. That left traders pleasantly surprised, as they had expected an increase to 8.2 percent.

The data looked good, but it caused nervousness among market participants as they started to question how long the US Federal Reserve will keep its stimulating policy. The Fed has been saying for a long time that unemployment is its major concern. Today’s data suggested that the labor market is improving, making investors speculate that the US central bank may drop its accommodative policy sooner than expected.

Gold fell from $1,793.89 to $1,780.85 per troy ounce as of 23:00 GMT on COMEX today, while its daily low was at $1,773.03. Silver declined from $34.97 to $34.16 per ounce before trading at $34.45. Platinum dropped from $1,722.50 to $1,701.00 and palladium went down from $669.00 to $658.35 per ounce today.

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

Leave a Reply