Prices continue to gain following last week's weak job data
Bullion prices climbed on Monday, 13 January 2014 with prices holding ground at their highest in a month after two-consecutive sessions of price gains and last week's less-than-stellar U.S. monthly jobs data.
The yellow metal brushed a session high of $1252.80 per ounce by late morning action. It eventually settled with a 0.4% gain at $1251.10 per ounce.
March silver also trended higher today. It broke into positive territory in late morning floor trade after trading as low as $19.97 per ounce earlier in the session. It touched a session high of $20.43 per ounce moments before settling at $20.37 per ounce, or 0.7% higher.
Traders continue to digest last Friday's much-weaker-than-expected U.S. jobs report, which begins to suggest the Federal Reserve pay have to taper its just-implemented tapering program. The big miss to the downside on non-farm jobs growth in December now makes upcoming U.S. economic data that much more important, to see if a trend of weaker reports is developing. The U.S. dollar index hit a two-week low on Monday and U.S. Treasury bonds hit a three-week high, in the wake of the dismal jobs report released Friday.
In overnight news, Iran and six world powers this weekend agreed to move to the next step in the winding down of Iran's nuclear weapons program. This put some pressure on crude oil markets, given the present embargo that limits Iran's oil being sold on the world market, which would end if Iran continues to cooperate with the major world powers.
The physical gold market in Asia could see better demand in the very near term as the Chinese Lunar New Year holiday begins on January 31. That holiday typically sees gold as a popular gift.
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U.S. economic data on Monday was limited to the December Treasury budget, which showed a surplus of $53.20 billion after showing a deficit of $1.20 billion in December 2012.
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