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Oct. 03, 2014 11:35AM PST
Friday’s US nonfarm payroll data proved trying for precious metals prices as the better than expected results weighed heavy on metal prices. Gold slipped down below $1,200, reaching a 2014 low of $1,190 before gaining back a couple of dollars. Silver prices also hit a snag, falling below $17.
“The move in the dollar has been quite drastic after the good US nonfarm payrolls number, and we came down below $1,200, and there is a good possibility that we’ll go some $10-$20 lower over the next few hours,” MKS SA head of trading Afshin Nabavi told Reuters.
A rising dollar generally puts pressure on precious metals, and the currency is performing very well. It is at a four-year high and seems ready to close the day on its 12th straight week of gains.
US gold futures fell to $1,196.30 an ounce.
Like gold, silver dropped 1.1 percent or $0.18 to $16.88 per ounce. In earlier trade the white metal hit a low not seen since March 2010 at $16.78.
Copper on the London Metal Exchange gained 0.6 percent or $39.83 to trade at $6,639.50 per tonne on Friday, according to Reuters. This comes after the metal hit a five-month low in the previous session.
“There’s a bit of stabilization today, but I don’t think it necessarily marks a turning point back up,” Stephen Briggs, metals strategist at BNP Paribas, told Reuters.
Copper prices are on track to close the week down 1 percent, Reuters reported, due to concerns over economic growth in Europe and China as well as a probable increase in supply.
On the Comex in New York, copper for December delivery was down $0.002 at $2.9965 per pound, according to Bullion Desk.
Meanwhile, Brent crude oil fell to $92.50 per barrel on Friday, according to Reuters. The commodity fell as a strong US jobs report lifted the dollar and investors continue to see a surplus in supply of Brent crude oil.
“As long as we have a dollar rally, we will see a move out of commodities,” Bill Hubard, chief economist at Bankor, told Reuters.