Gold traders are sitting tight waiting for today’s nonfarm payroll release. Gold gained $3.20 in Friday morning’s trade to settle at 1232.60. Precious metals rose on Thursday after two days of losses as traders added positions ahead of Friday’s key U.S. nonfarm payrolls report, which will be closely watched for clues on whether the Federal Reserve will keep trimming its bond-buying stimulus.
Gold prices moved up yesterday after moving in a range, gold ended up its session by moving in a range as mixed data coming from US and China kept the prices of Gold in range. Markets fear that a strong U.S. jobs report later today could prompt the Federal Reserve to further reduce its bond-buying stimulus. Bank of America Merrill Lynch lowered its 2014 average gold price forecast to $1,150, citing an uncertain macro-economic environment and lack of investment demand. Commodity exchange traded products suffered their worst year on record in 2013 as investors dumped gold holdings and joined the equity rally. Gold prices are expected to move lower after showing some upside however, positive US Non-Farm Payroll can push the prices down.
Silver and other precious metals are taking their cues from gold with silver trading at 19.648 down by 35 points after a mixed trade balance report from China this morning. Chinese exports declined while Chinese imports climbed. Platinum is trading at 1421.90 up by $2.95 while palladium added 60 cents to reach 737.50. Copper might decline amidst concerns that the Chinese economy may continue slow down. China`s PPI which extended its decline for twenty two consecutive months is adding to the evidence that manufacturing sector is extending its weakness.
Copper is trading at 3.30 recovering 3 pips this morning after Thursday’s fall. Copper witnessed a huge fall in its prices in the yesterday`s trading session at the LME platform down by 1.8% .Copper Stockpiles monitored by exchanges in London, New York and Shanghai are at the lowest since November 2012, with LME inventories dropping for a 46th consecutive trading session day is not providing any respite to copper prices as the red metal has been declining on concerns of slowdown in Chinese economy.
Copper might decline amidst concerns that the Chinese economy may slow down As mentioned earlier China`s PPI which extended its decline for twenty two consecutive months is adding to the evidence that the economy weakened. Copper prices remained down for the day as poor Chinese CPI data pushed lower the demand sentiment for copper. China’s Trade Balance moved down to 25.6B vs 33.8B prev, concern over Chinese economy losing its steam is raising. Chinese imports of copper and iron ore likely fell in December from the month before due to a cash crunch and as growth momentum slowed.