U.S. EMPLOYMENT REPORT BOOSTS MARKET SENTIMENT
March 07, 2012
Gold was slightly higher in trading, reflecting a stronger euro, positive U.S. economic news and heightened concern over Greece's critical bond swap agreement. Global markets are monitoring Greece as it faces a deadline for a bond exchange required for the country to receive a second aid package.
Gold traded at $1676.60 per ounce at 6:19 a.m. Pacific Time on the New York Spot Market with silver at $33.05 per ounce.
Market sentiment improved following a private-sector jobs report, which saw an increase of 216,000 positions last month, according to payroll processor ADP. The gain was just above the 215,000 jobs expected by economists. January data were also revised to show a gain of 173,000, versus the 170,000 job increase reported earlier.
"Gold is likely to benefit from further investment dip buying interest," James Moore, an analyst at TheBullionDesk.com in London, said in a report. According to Moore, markets are expected to see higher demand for physical gold than in recent weeks given the lower entry point for buyers.
(Sources: "ADP: Private Sector Adds 216,000 Jobs," Wall Street Journal, March 7, 2012; "Gold up, oil inches lower after jobs data," MarketWatch, March 7, 2012; "PRECIOUS-Gold recovers as dollar retreats, buyers step in," Reuters, March 7, 2012; "Gold Advances as Decline to Six-Week Low Attracts Buyers," Bloomberg, March 7, 2012)