Cache Metals Exclusive Daily Market Recap For Precious Metals
Spot gold pushed back toward $1650 in Asian trading after weaker-than-expected US job growth in March revived talk of a third round of quantitative easing, while a weaker dollar improved the attractiveness of dollar-denominated commodities for investors using other currencies.
The yellow metal started its rally in the Asian session as it was the first day of trading since the release of the U.S jobs data. The Labor Department says the economy added 120,000 jobs in March, down sharply from the previous months. Still, it was enough to bring the unemployment rate down to 8.2 percent. It was disappointing as the market was looking for 240,000 jobs added. This cracked the door ever so slightly for QE3 once again. U.S dollar remains buoyant, albeit lower against the Euro which has given precious metals its slight lift today.
Chinese data printed slightly better as annual inflation rate jumped more than expected in March to 3.6 percent as food prices remained volatile, but economists believe price pressures will moderate over the rest of year, giving Beijing the flexibility to ease monetary policy to support growth. Easing monetary policy in China is very bullish for commodities.
It was generally a quiet day of trading in the metals markets as most of Europe was still off for Easter long weekend. Volumes were lighter than usually. Weighing on the gold price was the negative Dow Jones industrial average which was seen down 150 points at one stage in the session. The Dow broke its psychological level of 13,000. On the docket for the week in regards to U.S data is the import price index and the initial jobless claims. It will be a choppy week for the yellow metal.
Spot silver couldn't quite catch a bid in the North American session after touching $32.12 in the Asian session. The weaker equities markets weighed on the industrial commodities complex. The gold silver ratio could break 52.25 and held in range.