Another wild ride for gold unfolded over the past two-and-a-half trading sessions as sellers and bargain hunters played tug-o-war with the market’s price rope and sent the yellow metal over a relatively wide spectrum of quotes.
The worst month for gold prices in 30 years was suddenly followed by the best daily climb since last August on Friday, the first day of the new month. The principal catalyst for the $66 upward move in bullion was the unexpectedly dismal report on May’s US job creation activity.
The headline number may have been a “disappointment” but the revisions being made to previous figures offered a healthy counter-balance to be sure. Overall, the data indicate a “pause” in the US recovery but not one that would impel a nice fat little QE3 package.
Gold’s worst loss on over one month showed signs of continuing to deepen as markets opened for trading in New York this morning. The uncertainty manifest in the European news flows on Monday kept the selling pressure on in the precious metals and commodities’ complex.
Metals prices received further lift this morning as turmoil in Europe diverted funds in their direction but the complex was still competing with what is apparently shaping up as a stock market rally of notable proportions on both sides of the Atlantic.
The carnage in certain commodities continued on Tuesday and some of the price-damaging selling sprees extended into this morning as well. A slightly lower dollar and a 3% recovery in crude oil did not lend assistance to the yellow metal this time.