Gold drops Friday as global recovery improves
The precious metal fell Friday on signs of improving global recovery and thereby influencing the appeal of the metal. The dollar witnessed calm trading against most majors ahead of U.S. labor data.
Gold for immediate delivery traded lower than the opening levels of 1,354.02 per ounce, where it is currently trading at 1,350.31. The metal reached the highest at 1,355.30 per ounce and lowest at 1,349.94 per ounce. Gold Futures fell by 0.11 percent or $1.500 to trade at $1,351.500 an ounce
Major Market Movers
The lack of data from Europe today will keep trading volumes relatively low, but with the approach of the U.S. session and the release of non-farm payrolls report, investors will heavilyreturn to markets and accordingly volatility is forecast will become the theme at the final trading day for this week.
The precious metal breached support at 1,352.25 per ounce, allowing more downside movement that could send the metal to trade near 1,323.12.
Non-farm payrolls report is expected to show 146.0 thousand jobs added in January, while the unemployment rate inched higher around 9.5 percent from 9.4 percent. The report is expected to be released at 13:30 GMT.
The S&P GSCI index closed at 654.91 yesterday after dropping 4.01% in trading from the opening levels of 661.04. The Reuters Jefferies CRB index fell 2.80% to close trading 341.00, compared with the opening levels of 344.87.
Gold Fixes & Dollar's Movement:
Metal Fixes (Feb 3); Gold fixes at AM Fix was set at $1,332.00 an ounce and by PM fixing at $1,328.00 an ounce, meanwhile silver fixing was set at $28.30000 an ounce and Platinum AM Fixing was set at $1,826.00 an ounce and at 1,828.00 an ounce during the PM fixing, finally the Palladium AM fixing was set at $809.00 at the AM fixing while the PM fixing at $808.00 an ounce.
The US dollar index, which tracks the performance of the dollar against six-majors traded at 77.75, compared with the opening levels of 77.76; setting highs of 77.81 and a low of 77.72.
Silver for immediate delivery traded lower at $28.85 an ounce compared with the opening levels of $28.90 an ounce, while setting a high of $28.92 an ounce and a low of $28.75 an ounce. Silver future contracts traded higher by 0.37% or 0.107 to trade at 28.835 an ounce
Platinum for immediate delivery traded higher by $6.50, at $1,839.00 an ounce, Palladium dropped by $1.50 to trade at $813.50 an ounce.