Gold Price Lower After More Positive U.S. Jobs Data

The price of gold was down on Friday following more positive employment data from the U.S. (see page 2). Private sector employment was particularly robust for May, adding over 200,000 jobs compared to the month prior. As shown in figure 1 (page2) unemployment and change in non-farm payrolls have both been steadily improving, fueling a more robust U.S. dollar that has put downward pressure on gold. The price of gold finished at $1,171 per ounce (↓1.7%), while silver (↓4%), platinum (↓1.6%) and palladium (↓3.3%) were also down, finishing at $16.10 $1,095 and $753 per ounce respectively. All of the major base metals including copper, lead and zinc were also down for the week, finishing at $2.69 (↓1.3%), $0.86 (↓2.5%) and $0.96 (↓3%) per pound respectively; nickel was the exception, rebounding after successive weeks of losses, rising 4.2% to finish at $5.96 per pound. The rise in nickel comes despite a persistent rise in nickel inventories, with LME nickel inventories climbing above 460,000 tonnes in May. The price of WTI crude fell below the $60.00 per barrel mark after OPEC announced it would continue its seemingly unconstrained output for another six months, despite warnings that the price of oil could fall further as a result. Certainly, lower oil prices have resulted in a rise in oil consumption, and applied further pressure on the U.S. shale sector. WTI crude finished at $58.95 per barrel on Friday. Finally, the UxC Broker Average Price for uranium was up slightly for the week, finishing at $35.81 per pound.

Click here for the full report