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Fundamental Precious Metals: Gold little changed ahead of non-farm payrolls
Written by article default Friday, 08 October 2010 09:46
The shiny metal was slightly changed at the end of the week where investors were wary of taking long positions on gold before the release of the awaited non-farm payrolls.Spot gold is trading at $1332.28 an ounce, recording a high of $1336.75 and a low of $1327.41.
Yesterday, gold fell sharply to shed $15.50 to close at 1.15% an ounce to close at $1333.35 an ounce. Gold price was set in London on Thursday at $1345.00 per ounce declining from $1359.50 during the AM fixing.
Notwithstanding the drop in gold prices yesterday, the metal is setting for the fourth straight weekly advance.
Technically speaking, the yellow metal slipped after reaching extended resistance near $1365.00 an ounce which became natural resistance point after touching it, while support is seen at $1320.00.
Gold dropped on Thursday after US jobless claims fell to a near three-month low easing concerns and helping the dollar to pare its losses.
However, the dollar index is currently trading close to the lowest level since January and 15-year low versus the yen.
The dollar index, which tracks the performance of the green currency versus six major currencies, hovered around 77.36 compared with the day's opening at 77.41.
Later in day, non-farm data will be under spot light due the mounting speculations the Fed will pump more money to salvage the economy from falling back to recession.
Private payrolls are expected to climb to 75,000 from 67,000, while unemployment will incline to 9.7% from 9.6%.
Among other precious metals, platinum declined to $1690.00 from the day's opening at $1692.70, palladium edged up to $583.00 from $580.70, and silver remained at 22.53 near opening, as of 07:05 GMT.
Crude oil, on the other hand, rebounded today to touch a high of $81.80 a barrel despite the decline in Asian shares.