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Comex Gold 1590.60, Silver 27.23 Holds Losses After U.S. Jobs Data
Jul 06, 2012 By Matt Day

NEW YORK--Gold futures initially pared their earlier losses, but held in negative territory, after a weaker-than-expected reading on the U.S. labor market raised some investors' expectations that the Federal Reserve would implement more easy money policies.

The most actively traded gold contract, for August delivery, recently traded down 0.9% at $1,595.20 a troy ounce on the Comex division of the New York Mercantile Exchange.

A recent set of weak U.S. economic data has led to speculation that the Fed will act to prop up the economy. That string continued on Friday as the Labor Department reported the U.S. economy added 80,000 jobs in June, short of expectations for a gain of 100,000.

Gold cut its losses after the release of the data, reaching a high of $1,601.60/oz, before retreating. Futures had traded at about $1,596 an ounce ahead of Friday's U.S. jobs report.

Some investors buy precious metals as a hedge against the inflation that can result from loose monetary policies from central banks. Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.

One trader said that after the gold market's wild swings on Fed easing expectations earlier this year, investors were skeptical of reading too much into Friday's report.

"I don't anticipate anything that is not well announced from the Fed," the trader said. "They have to do a lot of telegraphing to the market."

Write to Matt Day at [e-mail]
(END) Dow Jones Newswires
07-06-12 0855ET
Copyright (c) 2012 Dow Jones & Company, Inc.

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