News Column

Gold Ends Slightly Lower, But Gains 0.5% For Week

June 6, 2014



WASHINGTON (Alliance News) - Gold futures rallied but still ended a shade lower on Friday, after data from the Labor Department showed the US economy to have added more jobs in May than what analysts expected, with the dollar trending higher against some major currencies.

For the week, gold prices gained about 0.5%.

US employment rose more than expected in May, after reporting a sharp jump in employment in the previous month, a Labor Department report showed Friday.

Gold for August delivery, the most actively traded contract, shed USD0.80 or 0.1% to close at USD1,252.50 an ounce on the Comex division of the New York Mercantile Exchange on Friday.

Gold for June delivery scaled an intraday high of USD1,258.20 and a low of USD1,245.70 an ounce.

On Thursday, gold futures ended higher on the European Central Bank's decision to lower its lending rate to 0.15% and cut rates on bank deposits parked overnight with the central bank to negative.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 787.08 tons on Thursday, from its previous close.

The dollar index, which tracks the US unit against six major currencies, traded at 80.46 on Friday, up from its previous close of 80.37 late Thursday in North American trade. The dollar scaled a high of 80.53 intraday and a low of 80.24.

The euro traded lower against the dollar at USD1.3639 on Friday, as compared to its previous close of USD1.3661 late Thursday in North American trade. The euro scaled a high of USD1.3676 intraday and a low of USD1.3620.

In economic news from the US, data from the Labor Department showed non-farm payroll employment to have increased by 217,000 jobs in May, after jumping 282,000 jobs in April. Economists expected employment to rise by about 215,000 jobs in the month.

The unemployment rate was steady at 6.3% in May, while economists expected the unemployment rate to edge up to 6.4%.

From the eurozone, Germany's central bank on Friday raised the country's growth projection for 2014 to 1.9% from 1.7% estimated in December, citing strength in the domestic economy and the gradual recovery of the euro area.

Elsewhere, the World Bank in an economic update said China will meet the 7.5% growth target this year, although its economic growth will moderate over the medium term because of gradual re-balancing. The World Bank's China Economic Update indicated that from a 7.7% growth in 2013, China's growth is set to ease to 7.6% this year and to 7.5% in 2015.



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Source: Alliance News


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