Today’s AM LBMA Gold Price was $1,173.40, €1,053.32 and £769.85/oz.
Friday’s AM LBMA Gold Price was $1,175.90, €1,044.25 and £767.82/oz.
Gold fell $6.10 or 0.52% Friday to $1,170.90/oz. Silver slipped $0.08 or 0.49% to $16.10/oz.
Gold in Singapore for immediate delivery ticked lower and then higher and was up 0.1% to $1,172.86/oz near the end of the day, while gold in Switzerland was again flat. A stronger dollar, near a 13-year high verses the yen, may have contributed to gold’s recent weakness.
After Friday’s U.S. nonfarm payrolls report showed its largest growth since December, up 280,000 from last month, gold sunk to an eleven week low at $1,162.35/oz. The payrolls figure was significantly higher than the 225,000 that analysts were expecting. Although some question the veracity of the Bureau of Labor Statistics jobs numbers.
The jobs number led to renewed idle speculation that the U.S. Federal Reserve may start to raise interest rates in September.
A senior U.S. official today denied a news wire report that President Barack Obama had told a Group of Seven industrial nations’ summit that the strong dollar was a problem.
Bloomberg News earlier quoted a French official as saying Obama had made the comment. “The President did not state that the strong dollar was a problem,” the U.S. official said. He made a point that he has made previously, a number of times: that global demand is too weak and that G7 countries need to use all policy instruments, including fiscal policy as well as structural reforms and monetary policy, to promote growth.”
Sentiment in the euro zone weakened further in June as the Greek debt crisis and a slightly firmer single currency prompted investors to pare back their expectations for the economy. Sentix research group’s index tracking morale among investors and analysts in the euro area slipped to 17.1 in June from 19.6 in May. That was below the Reuters consensus forecast for a reading of 18.7.
The world’s largest gold back ETF, the SPDR Gold Trust, saw holdings drop 0.17% to 708.70 tonnes on Friday,its lowest since mid January. This shows poor sentiment in the gold market.
In South Africa, the Mineworkers and Construction Union said yesterday it would launch a strike if its rival union and gold mining companies impose a wage deal on its members.
In late European trading gold is up 0.31% at $1,174.81/oz. Silver is up 0.08% at $16.11/oz and platinum is up 0.41% at $16.11/oz.