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Gold Futures Turn Slightly Positive Amid Mixed Jobs Report

Strategic Insights

— 1 min read

Despite a mixed jobs report from the US, which showed the jobless rate unexpectedly edged down to 9.5% in June but nonfarm payrolls fell by a more-than-expected 125,000, gold futures have turned slightly positive. The most-actively traded contract, for August delivery, was recently up 50 cents at $1,207.20 an ounce on the Comex division of the New York Mercantile Exchange. However, gold prices are not benefiting much from their traditional role as a safe-haven investment due to traders remaining defensive after gold prices plummeted Thursday.

Key Takeaways:

  • The August gold futures contract was up 50 cents at $1,207.20 an ounce, after declining $3.60 shortly before the US payrolls report.
  • The jobless rate unexpectedly edged down to 9.5% in June from 9.7% the previous month, but nonfarm payrolls fell by a more-than-expected 125,000.
  • Traders are remaining defensive after gold prices plummeted Thursday, with Dan Cook, senior market analyst with IG Markets, saying "People are a little bit skittish."
  • The $1,200 level serves as decent support for gold prices, with Dan Cook stating "$1,200 seems like a decent support level."
  • Charles Nedoss, senior market strategist with Olympus Futures, noted that Thursday's close was below the 10-, 20- and 50-day moving averages, indicating "Momentum's a little to the downside."
  • The August contract hasn't closed below the psychologically key $1,200 mark since May 25, and Thursday's close was at its lowest point in more than a month.

Statistics:

  • Gold futures increased by 50 cents to $1,207.20 an ounce after declining $3.60.
  • 225,000 government workers lost their temporary jobs following the 2010 census.
  • 83,000 private-sector jobs were added in June.
  • The jobless rate unexpectedly edged down to 9.5% in June from 9.7% the previous month.
  • Nonfarm payrolls fell by a more-than-expected 125,000 last month.
  • Gold prices plummeted by nearly $40 to close at their lowest point in more than a month on Thursday.
  • The August contract's low of $1,198.80 Friday.

Sources:

  • Dow Jones Commodities News via Comtex
  • Matt Whittaker, Dow Jones Newswires
  • Dan Cook, senior market analyst with IG Markets
  • Charles Nedoss, senior market strategist with Olympus Futures
  • Dow Jones Newswires, copyright 2010 Dow Jones & Company, Inc.

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