Gold little-changed as market awaits US weekly jobless claims data
LONDON (July 25) Trade in the precious metals was uneventful on Thursday morning, with little to move prices ahead of the release of the weekly unemployment figures in the US later today.
Spot gold was last at $1,320.55/1,321.40 per ounce, up $2.70 on the previous session's close, but down nearly $30 on the week's high.
In wider markets, the dollar gained against the euro, trading around 1.3185, while in equities, the Nikkei slipped more than one percent to 14,562.
"A slight increase in US tapering fears after sharp gains in US new homes sales supported the dollar and weighed on gold," analysts at ANZ said.
Yesterday , the July US PMI rose to 53.2, against a forecast 52.5, while June new home sales were 497,000, compared with an expected 482,000.
"Gold prices were lower after better-than-expected US PMI numbers triggered renewed concerns about monetary policy," Credit Suisse said.
In data releases so far this morning, Spanish unemployment fell for the first time in a year. The first quarter unemployment rate dropped to 26.3 percent, from 27.2 percent. This was followed by the July German Ifo Business Climate number at 106.2, up from 105.9
The market's attention now turns back to the US, where the weekly unemployment claims figure has been forecast at 339,000. Any large deviation would again be seen as potentially having repercussions for the longevity of quantitative easing.
SOUTH AFRICAN LABOUR OUTLOOK
"Reports of South African unions filing an official wage dispute signalled a break-down in wage negotiations within the gold sector – but potential physical supply disruptions were largely ignored by gold market participants," broker ANZ said.
Yesterday, unions representing South African miners formally declared a wage dispute, opening the door to later declaring legal strikes. South Africa is the world's fifth largest gold producer.
In others, platinum was last at $1,438/1,443 per ounce, down $2 on the previous close. Palladium, meanwhile, fell $5 to $739/744 per ounce.
"Those markets are more cyclical and should therefore outperform gold going forward," Credit Suisse said.
Trading in silver was unremarkable, with the metal dropping 4 cents to $20.08/20.13 per ounce.
