Gold slips as reassuring jobs, trade reports give investors more hope about economic recovery
By APThursday, September 9, 2010
Gold slides on reassuring jobs, trade reports
Gold prices slid Thursday after reassuring reports on the U.S. jobs market and trade created some optimism about the economy.
Traders and investors also sold gold to take a profit after it hit a record high settlement price earlier this week, analysts said.
Gold for December delivery fell $6.60 to settle at $1,250.90 an ounce. It settled at a record high of $1,259.30 an ounce Tuesday as investors sought assets viewed as safer amid renewed worries about the global economy.
The Labor Department said new unemployment claims fell by 27,000 last week, an encouraging signs that companies are not moving as quickly to lay off workers as the economy slows.
The government also said trade deficit narrowed in July as exports climbed to the highest level in nearly two years. The reports bolstered some appetite for risk, sending stocks higher.
Most commodities were mixed because of an absence of significant news to shift specific markets, Lind-Waldock senior market strategist Rich Ilczyszyn said.
In other December contracts, silver lost 15.4 cents to settle at $19.855 an ounce and copper fell 5.7 cents to $3.4435 a pound.
September palladium fell $4.90 to settle at $520.60 an ounce and October platinum fell $8.90 to $1,553.30 an ounce.
In energy trading, oil prices retreated after the government said commercial crude inventories fell last week but remained at a 30-year high.
Benchmark oil for October delivery dipped 42 cents to settle at $74.25 a barrel on the New York Mercantile Exchange.
In other October contracts, heating oil lost 1.33 cents to settle at $2.0684 a gallon, gasoline fell 0.4 cent to $1.9354 a gallon and natural gas slipped 4.6 cents to $3.768 per 1,000 cubic feet.
Meanwhile, wheat and corn prices rose amid speculation about the global supply.
The Agriculture Department is expected to provide more insight into the market Friday when it issues a U.S. crop production outlook and world agricultural supply and demand estimates.
December wheat jumped 27 cents to $7.38 a bushel and corn added 8.25 cents to $4.7075 a bushel. November soybeans fell 2.75 cents to $10.46 a bushel.
