Gold advances on payroll dataBaystreet.ca
Gold futures vied Friday to snap a three-day losing streak, rising modestly after U.S. employment data showed a rebound in hiring last month.Gold for December delivery advanced $5.40, or 0.3%, to $1,595.90 U.S. an ounce on the Comex division of the New York Mercantile Exchange.The metal, which ended lower for each of the previous three sessions, has lost 1.3% so far this week.Most of the recent losses came as the Federal Reserve and the European Central Bank leaders disappointed investors by not detailing any immediate plans to spur economic growth in the U.S. or curb the sovereign-debt crisis in the euro-zone.Some saw a silver lining, however."Given the disappointment at the E.C.B.'s failure to act and the sharp fall in prices of other commodities, yesterday's drop in the gold price was actually fairly moderate," analysts at Commerzbank said in a note to clients."We see this as a sign of relative strength, and are still confident that the fears about the financial system, the geopolitical risks, the low and in some cases negative real interest rates, coupled with a 'currency war' and continued interest on the part of investors and central banks, create a positive environment for gold's traditional role as capital protection," they said.Dips below $1,600 U.S. an ounce are likely to be viewed as "an attractive opportunity to buy," the analysts said, adding they foresee a significant increase in the price of gold during the second half of the year.Meanwhile, U.S. employment outside the farm sector grew by 163,000 workers in July, the U.S. Labor Department said. That outpaced expectations of a rise of about 100,000 for nonfarm payrolls and was the fastest pace of job growth since February.Also helping gold, the dollar traded lower. The ICE dollar index , which compares the U.S. unit to a basket of six currencies, declined to 82.845 from 83.320 late Thursday.The broader suite of metals tracked gold higher as the trading week drew toward a close.Silver for September delivery rose 31 cents, or 1.1%, to $27.29 U.S. an ounce. September copper gained five cents, or 1.4%, to $3.34 U.S. a pound.