Gold falls as Oil undergoes biggest two week rally in almost two decades
The price of gold slumped on Friday following positive job data out of the U.S.; non-farm payroll figures showed 257,000 jobs were added in January; well ahead of the 228,000 forecast, and higher than December's 252,000. Despite the unemployment rate rising slightly to 5.7% from 5.6% last month, this was attributed to a growing labour force as more Americans searched for jobs. After hitting a high of $1,270 per ounce, gold fell to $1,236 (-4%) by Friday evening. Silver experienced a similar decline (-3.2%), reaching almost $17.40 per ounce on Tuesday before dropping on Friday to finish at $16.74 per ounce. Oil prices had a highly volatile week, with WTI crude climbing over $54/bbl, then falling to almost $47/bbl followed by another price surge on Friday; WTI finished at $52/bbl (7.3%) at the time of publication. The past two weeks represent the most significant volatility in oil prices in almost two decades. In other commodities, platinum fell (-1.4%) to $1,224 per ounce while palladium climbed (1.7%) to $783 per ounce. In base metals, copper rose (2.3%) to $2.57 per pound after several weeks of losses on the back of further economic stimulus in China, including a cut in the bank reserve ratio by the Peoples Bank of China (PBOC). Nickel (0.4%) and Zinc (1.5%) rose to $6.89 and $0.98 per pound respectively, while lead (-0.4%) closed lower to$0.83 per pound. To round of the week, the UxC Broker Average Price (BAP) of uranium rose further during the week, finishing at $38.13 per pound on Friday.
Here’s an overview of what’s in the Dig this week:
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[South African Diamonds source]