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Precious metals turn little pale

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Capital Market
Last Updated : Jan 09 2015 | 1:46 PM IST

A sharply higher U.S. dollar index was also a negative outside market force

Bullion prices ended lower at Comex on Thursday, 08 January 2015 at Comex. Gold buyers were scarce as more risk appetite returned to the market place late this week. A sharply higher U.S. dollar index was also a negative outside market force working against the precious metals again on Thursday. Gold rose from earlier lows on Thursday and briefly turned positive after a slightly weaker-than-expected jobless-claims report, but still closed below its Wednesday afternoon level after a session of choppy trading as investors moved money into stocks. A statement from European Central Bank President Mario Draghi saying that the central bank was ready to expand stimulus measures also kept losses in check.

Gold for February delivery slid $2.20, or 0.2%, to settle at $1,208.50 an ounce.

March silver fell 16 cents, or 1%, to $16.39 an ounce.

World stock markets have rebounded from this week's sharp sell offs. The U.S. dollar index continues on its strong bull market run, hitting another 10-year high today. The Euro currency slumped to another nine-year low versus the greenback on Wednesday. The surging greenback remains a major, bearish underlying factor working against the raw commodity markets, including gold and silver.

Crude oil prices are slightly lower in afternoon trading. Prices Wednesday hit a 5.5-year low of $46.83 a barrel, basis nearby Nymex futures. Traders are awaiting arguably the most important U.S. economic data point of the monththe U.S. employment situation report due out Friday morning. The key non-farm payrolls number is expected to have risen by 240,000 workers in December.

U.S. economic data out Thursday includes the weekly jobless claims report, the Challenger job cuts report, and ICSC chain store sales trends. Initial jobless claims dropped to 294,000 last week from an unrevised 298,000 in the prior week, the Labor Department said on Thursday. Market had expected claims to total 290,000. Weaker-than-expected economic data often boosts haven demand for gold.

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First Published: Jan 09 2015 | 11:26 AM IST

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