Gold price lingers around $1,590/oz,US job data weighs

Gold price drifted around $1,590 an ounce on Friday.

Written by Reuters | Singapore | Published:March 15, 2013 9:13 am

Gold drifted around $1,590 an ounce on Friday,after upbeat U.S. labour market data added to evidence of an economic recovery that would make safe-haven assets like gold less attractive.

FUNDAMENTALS

Spot gold traded nearly flat at $1,589.61 an ounce by 0016 GMT,on course for a second week of modest gains.

U.S. gold inched down 0.1 percent to $1,588.70.

The number of Americans filing new claims for unemployment benefits fell for a third straight week last week,the latest indication the labour market recovery was gaining traction.

Barclays lowered its 2013 and 2014 price forecasts for gold on Thursday in a note,saying downside risks to the gold outlook have risen,while the upside catalysts have receded.

The U.S. Commodity Futures Trading Commission has engaged in “a couple” of conversations about whether the daily setting of gold and silver prices in London is open to manipulation,Commissioner Scott O’Malia said on Thursday.

Germany’s economy will steadily recover ground lost at the end of 2012 and grow 0.6 percent this year thanks to higher investments on the back of low interest rates,IfW think tank said on Thursday,doubling its forecast.

Holdings of SPDR Gold Trust,the world’s largest gold-backed exchange-traded fund,had fallen 3.432 tonnes so far this week,on course for an eleventh week of decline,although holdings were unchanged at 1,236.307 tonnes from a day earlier on March 14.

MARKET NEWS

The Dow Jones industrial average extended its winning streak to 10 days on Thursday,a string of gains last seen in late 1996,and ended at another record high as investors were encouraged by data showing the labour market’s recovery was improving.

The rally in the U.S. dollar took a breather on Friday as sterling enjoyed a short squeeze,while the Australian dollar made the most of a barnstorming employment report at home.

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