Gold rises, as dollar declines after job growth data
By Polya Lesova, MarketWatch
Last Update: 9:12 AM ET May 4, 2007
NEW YORK (MarketWatch) -- Gold futures rose Friday, extending their prior-session gains, as the dollar fell against major currencies after Labor Department data for April showed the smallest increase in payroll employment since November 2004.
Gold for June delivery gained $2.20 to $686.60 an ounce on the New York Mercantile Exchange. On Thursday, gold futures closed up $9.30 at $684.40 an ounce.
"Look for continued strength as the day wears on, but keep a keen eye on next week as all market participants will be back in full force and as the Fed watching gets underway," said Jon Nadler, analyst at Kitco Bullion Dealers. "A test, if it comes, of the $695 area may succeed this time around."
Other metals prices were also mostly higher. July silver added 1.5 cents to $13.525 an ounce, July platinum rose $1.70 to $1,312.50 an ounce and July copper was up 0.6 cent to $3.7330 a pound. June palladium fell 25 cents to $376.25 an ounce.
The dollar edged lower after the Labor Department said that nonfarm payrolls expanded by 88,000 in April, lower than the 100,000 expected by economists surveyed by MarketWatch. See full story.
The euro was last up 0.2% at $1.3571, while the dollar was down 0.2% at 120.25 yen. See Currencies.
Crude-futures extended their recent losses early Friday with the June contract heading back toward $63 a barrel with traders still focused on rising crude supplies and news that the government will hold off on buying oil for its Strategic Petroleum Reserve until later in the year.
Crude for June delivery was down 11 cents at $63.08 a barrel in electronic trade. See Futures Movers.
On the supply side, gold warehouse inventories rose by 268,962 troy ounces to stand at 7.9 million troy ounces as of late Wednesday, according to Nymex data. Silver supplies fell by 1,040 troy ounces to stand at 131.3 million troy ounces as of late Thursday, while copper supplies fell by 68 short tons to 33,003 short tons.
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