October 22, 2013 / 3:45 PM / in 4 years

COMMODITIES-Gold rallies on weak U.S. jobs data; Brent oil up

By Barani Krishnan
    NEW YORK, Oct 22 (Reuters) - Gold surged on Tuesday after
weaker-than-expected U.S. jobs creation in September boosted the
precious metal's safe haven edge, while the dollar's sharp fall
against the euro lifted other commodities priced in the U.S.
    Geopolitical and supply-demand concerns pushed some markets
higher. Benchmark Brent crude oil out of Europe edged higher
after news of a deterioration in relations between the United
States and key OPEC oil producer Saudi Arabia.
    U.S. crude prices, however, fell after the U.S. Energy
Information Administration reported higher inventories
of oil. 
    That drop weighed on the Thomson Reuters/CoreCommodity CRB
index, which counts on U.S. crude as its main
component. The CRB closed nearly a quarter percent lower,
despite some sharp gains in several markets it tracked.
    Nickel and silver led the advancers on the
CRB, rising at least 2 percent each. Cocoa, copper
, lean hogs, aluminium and gold all rose
about 1 percent or more.  
    Gold's most active futures contract on New York's
COMEX settled up 2 percent at $1,342.60 an ounce after surging
to a three-week high of $1,344.70. 
    Gold rallied while the dollar fell to its lowest in nearly
two years against the euro after the soft U.S. jobs data for
September raised expectations the Federal Reserve will have to
stimulate the economy at the current pace into 2014. 
    U.S. nonfarm payrolls rose by 148,000 last month, the Labor
Department said, well below the 180,000 forecast in a Reuters
poll. The data raised worries the world's largest economy had
lost momentum even before a government shutdown this month.
    "We were not even close to the 180,000 number ... the main
takeaway is that Fed tapering is still a long way away, probably
not for this year and that's the reason why everything shot up -
equities, commodities and gold in particular," said Robin Bhar,
a metals analyst with Societe Generale in London.
    "The next 24 hours are crucial because on what we have just
seen, gold should hold and even move higher if the dollar
    The spot price of bullion traded at above $1,340 an
ounce by 4:00 p.m. EDT (2000 GMT) after touching a session high
at $1,344.46. 
    Oil's benchmark Brent crude rose after a source close to
Saudi policy said Riyadh would make a "major shift" in dealings
with the United States in protest against Washington's perceived
inaction over the Syria conflict and U.S. overtures to Iran.
    The planned change in ties between the energy superpower and
its traditional U.S. ally would have wide-ranging consequences,
including on arms purchases and oil sales, the source said.
    Benchmark Brent crude oil out of Europe's North Sea 
closed up 33 cents, or 0.3 percent, at $109.97 a barrel, after a
session peak at $110.94. U.S. crude settled down $1.42,
or 1.4 percent, at $97.80 a barrel. 
 Prices at 4:10 p.m. EDT (2010 GMT)      
                              LAST/      NET    PCT     YTD
                              CLOSE      CHG    CHG     CHG
 US crude                     97.59    -1.42  -1.4%    6.3%
 Brent crude                 110.05     0.41   0.4%   -1.0%
 Natural gas                  3.581   -0.087  -2.4%    6.9%
 US gold                    1342.60    26.80   2.0%  -19.9%
 Gold                       1339.89    24.75   1.9%  -20.0%
 US Copper                     3.33     0.03   1.0%   -8.9%
 LME Copper                 7332.00    88.00   1.2%   -7.6%
 Dollar                      79.236   -0.459  -0.6%    3.2%
 CRB                        284.721   -0.617  -0.2%   -3.5%
 US corn                     438.25    -5.75  -1.3%  -37.2%
 US soybeans                1302.25    -1.00  -0.1%   -8.2%
 US wheat                    700.75     1.00   0.1%   -9.9%
 US Coffee                   111.95    -0.75  -0.7%  -22.1%
 US Cocoa                   2769.00    39.00   1.4%   23.8%
 US Sugar                     19.45     0.03   0.2%   -0.3%
 US silver                   22.754   22.532   1.7%  -24.7%
 US platinum                1447.80    12.10   0.0%   -5.9%
 US palladium                751.90     2.65   0.4%    6.9%
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