Gold Futures Bounce Off 12-Week Low
ICM Brokers | Sep 08, 2014 02:12AM ET
Crude Oil
Crude oil futures declined on Friday, following the release of disappointing U.S. employment data and as Ukraine and pro-Russian separatists agreed to a ceasefire. In a report, the Department of Labor said that the U.S. economy added 142,000 jobs in August, the lowest amount in eight months and less than the expected increase of 225,000. The report also showed that the U.S. unemployment rate ticked down to 6.1% last month from 6.2%, but that was mostly due to more people dropping out of the labor force. While the U.S. economy continues to gain steam, Federal Reserve Chair Janet Yellen has expressed concern over slackness persistent in the labor market. The U.S. is the world’s largest oil consuming nation and employment figures are used as indicators for fuel demand growth.
Gold
Gold futures bounced off a 12-week low to end Friday’s session mildly higher, as investors returned to the market following the release of weaker than expected U.S. nonfarm payrolls data for August. The report also showed that the U.S. unemployment rate ticked down to 6.1% last month from 6.2%, but that was mostly due to more people dropping out of the labor force. The weaker-than-expected jobs report was taken as a sign that the Federal Reserve will not begin raising interest rates anytime soon. Gold costs money to store and struggles to compete yield-bearing assets when interest rates are on the rise. While the U.S. economy continues to gain steam, Fed Chair Janet Yellen has expressed concern over slackness persistent in the labor market.
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