AGL 39.10 Increased By ▲ 0.56 (1.45%)
AIRLINK 129.43 Decreased By ▼ -0.07 (-0.05%)
BOP 5.74 Increased By ▲ 0.13 (2.32%)
CNERGY 3.95 Increased By ▲ 0.09 (2.33%)
DCL 8.83 Increased By ▲ 0.10 (1.15%)
DFML 41.33 Decreased By ▼ -0.43 (-1.03%)
DGKC 89.17 Increased By ▲ 0.87 (0.99%)
FCCL 35.30 Increased By ▲ 0.30 (0.86%)
FFBL 66.72 Decreased By ▼ -0.63 (-0.94%)
FFL 10.85 Increased By ▲ 0.24 (2.26%)
HUBC 109.00 Increased By ▲ 0.24 (0.22%)
HUMNL 14.87 Increased By ▲ 0.21 (1.43%)
KEL 4.76 Increased By ▲ 0.01 (0.21%)
KOSM 7.06 Increased By ▲ 0.11 (1.58%)
MLCF 43.06 Increased By ▲ 1.41 (3.39%)
NBP 59.89 Increased By ▲ 0.29 (0.49%)
OGDC 179.40 Decreased By ▼ -3.60 (-1.97%)
PAEL 26.25 No Change ▼ 0.00 (0%)
PIBTL 5.99 Increased By ▲ 0.02 (0.34%)
PPL 147.49 Increased By ▲ 0.79 (0.54%)
PRL 23.71 Increased By ▲ 0.10 (0.42%)
PTC 16.76 Increased By ▲ 0.20 (1.21%)
SEARL 70.15 Increased By ▲ 1.85 (2.71%)
TELE 7.28 Increased By ▲ 0.05 (0.69%)
TOMCL 35.96 Increased By ▲ 0.01 (0.03%)
TPLP 8.12 Increased By ▲ 0.27 (3.44%)
TREET 14.55 Increased By ▲ 0.35 (2.46%)
TRG 50.75 Increased By ▲ 0.30 (0.59%)
UNITY 27.10 Increased By ▲ 0.35 (1.31%)
WTL 1.24 Increased By ▲ 0.03 (2.48%)
BR100 9,854 Increased By 48.4 (0.49%)
BR30 29,724 Increased By 46.3 (0.16%)
KSE100 92,815 Increased By 510.7 (0.55%)
KSE30 28,937 Increased By 96.7 (0.34%)

Gold steadied on Friday as equity markets turned negative after non-farm payrolls data showed the US unemployment rate soared to its highest since 1983. The metal was down some 3 percent in earlier trading from its late Wednesday level as risk aversion receded after a trickle of better than expected economic data and a positively-received statement from the G20 leaders summit.
However the March payrolls data and fresh weakness in stock markets is turning attention back to gold. Employers slashed 663,000 US jobs in March and cut workers hours to the lowest on record, the numbers showed. Spot gold was quoted at $898.80/900.80 an ounce at 1530 GMT from $903.15 late in New York on Thursday, having earlier touched a low of $894.90.
"I think there are a number of things that have made people conclude that things are not as bad as they were a month or two ago," said Standard Chartered analyst Daniel Smith. "But I think the optimism is a bit overdone." "For the time being gold is likely to remain under pressure and other markets...will remain quite strong, but I dont think that is supported by the underlying picture," he said.
"Things are not accelerating downwards as they were but that does not mean we are moving back towards boom times." "Recent (economic) data has not been better, but it has been better than expected, so now people are talking about a slowdown of a slowdown," Commerzbank analyst Eugen Weinberg said.
"For quite some time people were too positive for gold, so it is not surprising we are under pressure." On the foreign exchange markets, the dollar rose against most currencies as the jobs data dulled hopes of a recovery and boosted the US currencys safe haven appeal. Gold is often bought as an alternative investment to the dollar and typically moves in the opposite direction to it.
However, the relationship has been weakened in recent months as both assets benefited from risk aversion. Gold was also pressured by reports the G20 had discussed the sale of 403 tonnes of gold held by the International Monetary Fund, approved last year. Investment bank UBS said it expected the sale to be conducted under the terms of the Central Bank Gold Agreement.
Signatories of the pact, which include the IMF and the European Central Bank, are limited to sales of 500 tonnes of gold a year. "Due to the limited amount of time available before the expiry of the second agreement (in September) and the legislative hurdles that must be cleared, we believe this almost guarantees that a third five-year CBGA will be announced," it said.
Among other precious metals, spot platinum was at $1,141/1,151 an ounce from $1,153.50, while spot palladium was at $216/221 an ounce from $221. Spot silver was at $12.74/12.79 an ounce from $12.90. The worlds largest silver-backed exchange-traded fund, the iShares Silver Trust, said its holdings dipped from a record on Thursday. ETFs, which back up the securities they issue with physical commodities, are a major element of demand.

Copyright Reuters, 2009

Comments

Comments are closed.