Gold, silver erase overnight losses after data show U.S. economy lukewarm

NEW YORK (December 16) Gold prices are up just a bit and silver prices are near steady in midday U.S. trading Tuesday, following of a slew of economic data that showed the U.S. economy is not running hot but neither is it cooling off too rapidly. Gold and silver prices had been weaker overnight and leading right up to the U.S. reports, and in the wake of the reports both metals erased their losses and climbed just a bit. February gold was last up $15.80 at $4,350.70. March silver prices were up $0.056 at $63.67.

U.S. nonfarm payrolls increased 64,000 in November after declining 105,000 in October, adding to the choppiness seen in the U.S. labor market in recent months. The overall unemployment rate rose to 4.6% versus 4.5% expected by the marketplace and continued its upward climb as many out-of-work Americans struggle to land new jobs. A separate report out Tuesday showed U.S. retail sales were little changed in October as a decline at auto dealers and weaker gasoline receipts offset stronger spending in other categories. And figures from S&P Global showed U.S. business activity expanded in December at the slowest pace in six months, while a measure of input prices jumped to a more than three-year high.

The key outside markets today see the U.S. dollar index modestly lower. Crude oil prices are solidly lower, hit an eight-month low, and are trading around $55.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.16%.

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