Gold futures pared much of the gains, but still ended higher Friday on a sell-off, even as the dollar strengthened against a basket of major currencies after some upbeat jobs and employment data from the U.S. For the week, gold prices gained 0.3 percent.
Employment in the U.S. increased much more than anticipated in February, a Labor Department release showed Friday, with the job growth pushing the unemployment rate down to a four-year low.
Chinese export growth exceeded economists’ forecast, while imports disappointed with numbers below expectations, data from the General Administration of Customs showed.
Gold for April delivery, the most actively traded contract, gained $1.80 or 0.1 percent to close at $1,576.90 an ounce Friday on the Comex division of the New York Mercantile Exchange.Gold for April delivery scaled an intraday high of $1,583.10 and a low of $1,560.40 an ounce.
Yesterday, gold settled marginally higher on a weak dollar even as the euro surged after the European Central Bank maintained its lending rate unchanged. The ECB held its key interest rate at 0.75 percent, with Draghi exuding optimism for a recovery in the recession-hit euro area economy later this year and indicating continuance of the central bank’s accommodative monetary policy.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 82.73 on Friday, up from 82.11 late Thursday in North American trade. The dollar scaled a high of 82.92 intraday and a low of 81.07.
The euro traded lower against the dollar at $1.2989 on Friday, as compared to $1.3107 late Thursday in North America. The euro scaled a high of $1.3134 intraday and a low of $1.2956.
In economic news from the U.S., the Labor Department said non-farm payroll employment rose by 236,000 jobs in February following a downwardly revised increase of 119,000 jobs in January. Economists expected employment to increase by about 171,000 jobs compared to the addition of 157,000 jobs originally reported for the previous month.
The Labor Department also said unemployment rate dipped to 7.7 percent in February from 7.9 percent in January, falling to its lowest level since December of 2008.
Wholesale inventories in the U.S. increased much more than expected in January, a Commerce Department report showed, although wholesale sales dropped notably. Wholesale inventories surged 1.2 percent in January after rising by a revised 0.1 percent in December. Economists expected inventories to increase by about 0.4 percent compared to the 0.1 percent drop originally reported for the previous month. The increase was attributed in part to a 1.1 percent increase in durable goods inventories.
Elsewhere, Germany’s industrial output remained flat in January from a month ago, when it was up 0.6 percent, the Federal Ministry of Economics and Technology said. Industrial output was forecast to grow by 0.4 percent. On a yearly basis, industrial production slipped by working-day adjusted 1.3 percent, sharper than the 0.5 percent fall recorded the previous month. The rate of decrease slightly exceeded a 1.2 percent drop forecast by economists.
A General Administration of Customs report showed Chinese export growth rose 21.8 percent year-on-year in February, much faster than the expected 8.1 percent increase. Nevertheless, this compares poorly with January’s 25 percent growth. Imports declined more than expected during the month, falling 15.2 percent year-on-year. Economists expected a 8.5 percent drop. In January, imports grew 28.8 percent.
China’s trade balance was a surplus of $15.25 billion in February, contrary to expectations for a deficit of $6.9 billion. In January, the surplus was $29.15 billion.
by RTT Staff Writer
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