Gold Prices Hold Above 10-Month Low
Gold jumped following disappointing U.S. job creation dad Friday, as the dollar steadied and European shares dropped.
The metal matched a similar pattern in other commodities, such as copper, further recouping heavy losses seen in the previous session, as investors refrained from taking large bets ahead of the non-farm payrolls data.
Gold edged up 0.7 percent to $1,563 per ounce, but it was still down about 1.7 percent on the week and heading for its second week of declines. It fell to a 10-month low at 1,539.74 on Thursday, weighed down by a jump in the dollar after the Bank of Japan unveiled ambitious monetary stimulus plans.
U.S. gold futures also rose 0.9 percent to $1,566 an ounce.
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An improving growth trend in the United States has been a key driver for investors taking on more risk this year, but weaker-than-expected data this week on manufacturing activity and private sector hiring has suggested the momentum might be flagging.
The dollar, which was the main beneficiary of Thursday's announcement from Japan's central bank of a massive $1.4 trillion injection of liquidity into the economy to end decades of deflation, steadied against a basket of main currencies.
European shares edged to a one-month low ahead of the U.S. data. Asian shares had slipped due to concerns over bird flu in China and escalating tensions in the Korean peninsula.
ETFs Holdings Fall Again
Investor interest continued to recede on Thursday, with bullion holdings in major gold exchange traded funds dropping to their lowest level since August 2012.
Holdings of the largest fund, New York's SPDR Gold, declined another 87,063 ounces.
"Crucially, investor confidence in gold is at rock bottom with little chance of a sustained recovery where physical flows are not substantial enough to counter fund liquidations," VTB Capital said in a note.
China was absent from the physical market for a Thursday and Friday holiday, adding to the overall weakness in metals.
Silver rose 0.4 percent to about $27 per ounce, after tumbling to its lowest level since July 24 in the previous session.
Platinum, which dropped to its lowest since late August on Thursday, was up 0.1 percent at $1,521 per ounce. Palladium rose 0.6 percent to $720 an ounce.
