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1st LD Writethru: Gold up on poor U.S. data

Xinhua, February 6, 2016 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange rose Friday as poor U.S. employment data gave support to the precious metal.

The most active gold contract for April delivery rose 0.2 U.S. dollar, or 0.02 percent, to settle at 1,157.70 dollars per ounce.

A report released by the U.S. Department of Labor Friday showed worse than expected levels of employment, as the total nonfarm payroll employment rose 151,000 in January, and unemployment fell to 4.9 percent. Analysts note that the report was not entirely negative as the labor force participation rate rose by 1 percent, a measure which U.S. presidential candidates have cited concern over.

Gold was given further support as the U.S. Dow Jones Industrial Average fell by 216 points, or 1.32 percent, as of 1730 GMT. Analysts believe when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

A report released Friday by the U.S. Department of Commerce showed that the country's trade deficit widened to negative 43.4 billion U.S. dollars, which was worse than expected. Analysts note weakness in the exports sector, as exports fell by 0.3 percent to 181.5 billion U.S. dollars.

The precious metal was prevented from falling further as the U.S. Dollar Index rose by 0.63 to 97.16 as of 1745 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

Silver for March delivery fell 7.2 cents, or 0.48 percent, to close at 14.778 dollars per ounce. Platinum for April delivery dropped 2.6 dollars, or 0.29 percent, to close at 903.70 dollars per ounce. Endit