February 5, 2014 / 10:46 AM / 7 years ago

PRECIOUS-Gold rises, off highs, as investors mull mixed U.S. data

* U.S. ADP private-sector job data seen disappointing
    * SPDR Gold Trust exchange-traded fund reports rare inflow
    * Traders wary ahead of Friday's U.S. payrolls data
    * Coming: U.S. international trade, jobless claims Thursday

 (Updates comment, market activities)
    By Frank Tang and Jan Harvey
    NEW YORK/LONDON, Feb 5 (Reuters) - Gold rose on Wednesday
but failed to hold an earlier rally as a mixed bag of U.S.
economic indicators left investors uncertain over the pace of
recovery in the world's largest economy.
    Bullion's safe-haven appeal was underpinned by weaker U.S.
equities following a disappointing ADP U.S. private-sector jobs
report. Meanwhile, a separate report showed growth in the U.S.
services sector quickened to a four-month high in January and
hiring remained robust. 
    James Steel, chief precious metals analyst at HSBC, said the
direction of U.S. equities will be the main driver on gold until
Friday's nonfarm payrolls report.
    "We have noticed continued selling by producers and real
money investors into gold rallies. In the near term, bullion may
be more at risk to the downside rather than to the upside, in
our view," said Steel.
    Spot gold was up 0.3 percent to $1,258.46 an ounce by
3:10 p.m. EST (2010 GMT), having earlier risen as much as 1.5
percent to $1,273.26 after the U.S. ADP data. 
    U.S. COMEX gold futures for April delivery settled up
$5.70 an ounce at $1,256.90, with volume about 30 percent below
its 250-day average, preliminary Reuters data showed. 
    The weaker-than-expected ADP data raised concerns the a U.S.
nonfarm payrolls report for January, due Friday, may disappoint.
Nonfarm payrolls are widely seen as a barometer for the health
of the U.S. economy. 
    The S&P 500 index eased 0.1 percent after mixed data
gave investors few reasons to return to the market in what could
be the middle of a long-expected correction. 
    Concerns about fragile stock markets after a heavy selloff
have piqued some investors' interest in gold. The world's
largest bullion-backed exchange-traded fund, the SPDR Gold Trust
, reported a 3.9-tonne inflow on Tuesday. 
    Silver, which tends to be more volatile than gold,
rose 2.3 percent to $19.89 an ounce. Platinum climbed 0.3
percent to $1,376 an ounce and palladium gained 1.1
percent to $706.50 an ounce.
    Palladium's rebound comes after 11 straight sessions of
decline, its longest run since Reuters data began in 1984. 
    Both platinum group metals have come under selling pressure
since negotiations to end a wave of strikes in major producer
South Africa resumed this week. 
 3:10 PM EST     LAST/    NET   PCT      LOW    HIGH  CURRENT
                SETTLE   CHNG  CHNG                       VOL
 US Gold APR   1256.90   5.70   0.5  1251.80 1274.50  120,628
 US Silver MAR  19.805  0.383   2.0   19.435  20.335   45,910
 US Plat APR   1379.30   5.90   0.4  1372.80 1396.70    9,429
 US Pall MAR    707.10   7.00   1.0   700.00  717.40    5,133
 Gold          1258.46   3.86   0.3  1253.10 1273.26         
 Silver         19.890  0.440   2.3   19.480  20.200
 Platinum      1376.00   4.75   0.3  1375.25 1391.75
 Palladium      706.50   7.75   1.1   703.25  715.50
 TOTAL MARKET              VOLUME          30-D ATM VOLATILITY
                CURRENT   30D AVG  250D AVG   CURRENT     CHG
 US Gold        127,358   171,717   185,915     18.59   -0.13
 US Silver       50,748    44,034    56,072     26.33   -0.49
 US Platinum      9,588    10,882    13,315      19.3    0.66
 US Palladium     6,101     4,349     5,550     18.16    0.32
 (Additional reporting by Clara Denina in London; Editing by
Dale Hudson, William Hardy, Marguerita Choy and Nick Zieminski)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below