Friday August 03, 2012 8:49 AM
Comex gold futures saw modest price gains mostly evaporate Friday morning following a surprisingly stronger-than-expected U.S. employment report. The key non-farm payrolls component of the report rose by 165,000 in July, when only a rise of 95,000 was expected. December gold futures were posting gains of around $8 an ounce before the report and then sold off to trade around the unchanged level in the aftermath of the report. The stronger U.S. jobs report somewhat lessens the argument that the Federal Reserve will soon embark upon a monetary stimulus package, which would be at least initially bullish for the precious metals. However, the jury is still out on what the Fed is going to do with monetary policy in the coming weeks. In fact, it's doubtful Friday's jobs report will significantly sway the Fed's thinking on the matter. December gold last traded up $1.80 an ounce at $1,592.50.
By Jim Wyckoff, contributing to Kitco News; email@example.com