MW: Gold moves past $1,400 on worries about economy
By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures aimed for a record Friday, topping $1,400 an ounce after a disappointing jobs report pushed investors back to the perceived safety of the metal.
Gold for February delivery (GCG11 1,408, +18.60, +1.34%) added $15.10, or 1.1%, to $1,404.40 an ounce on the Comex division of the New York Mercantile Exchange.
Gold turned higher after the employment data, rising as far as $1,405.90.
“Expect the traders (to) think recovery is not around the corner after this and disappointing jobs details dominate today’s actions,” said in e-mail comments George Gero, a vice president at RBC Wealth Management.
Gold settled at a record $1.410.10 an ounce on Nov. 9, the last of a string of records that dominated markets since early September.
The U.S. economy added 39,000 jobs in November, the government said on Friday, a much slower pace than the market expected. The dollar fell sharply on the news.
A weaker dollar is beneficial to commodities as it makes them cheaper to holders of other currencies, broadening their investment appeal. For gold, it also spurs buying on fears of inflation and currency debasement.
The dollar index (DXY 79.34, -0.97, -1.20%) , which compares the U.S. unit to a basket of six currencies, traded lower at 79.53 compare to 80.21 in late North American trading Thursday.
Most metals tracked gold higher, with silver for March delivery (SIH11 2,931, +73.80, +2.58%) rising 65 cents, or 2.3%, to $28.23 an ounce.
Copper, however, traded nearly flat, feeling the pinch of worries the jobs report will keep the U.S. economy -- and demand for the metal -- mired for more time to come.
March copper (HGF11 398.40, +0.55, +0.14%) was up less than a penny at $3.99 a pound.
