Weekly Round-Up: US Jobs Data Dampens Precious Metals, Boosts Oil

Continued tension in the Ukraine brought another turbulent week for precious metals, Reuters reported today.  

Gold, however fared fairly well. Though the yellow metal fell early today to $1,329.35 on the back of stronger-than-expected US jobs data, it is expected to experience its fifth consecutive week of gains.

Commenting on gold’s future prospects, Credit Suisse (NYSE:CS) analyst Karim Cherif told Reuters, “[w]hen we look at the consensus on the payrolls, it is actually quite optimistic because the really cold weather conditions in the U.S. lasted throughout February as well.” As a result, “there could be some disappointment, which would probably give a last mini-push to gold. However, as we move to the second quarter, we don’t see why investors would begin to build heavy gold positions, given expectations of an improvement in the global economy and a possible stabilisation in Ukraine.”

Today’s US jobs data also caused silver to take a fall; it sank 2.7 percent this morning to hit $20.86 an ounce, Reuters notes.

Meanwhile, copper for delivery in three months fell 2 percent, to $6,910 a metric ton on the London Metal Exchange, Bloomberg Businessweek reported. Pushing down the red metal was an onshore bond default by Shanghai Chaori Solar Energy Science & Technology, the metal’s largest consumer.

On the COMEX in New York, copper for delivery in May slipped 2.2 percent, to $3.146 a pound, in early trading.

For Brent crude, the US employment data was positive. It was pushed up $0.10, to $108.20 a barrel, on the ICE futures exchange in London, according to the Associated Press.