US gold futures traded lower on Friday, after partially erasing initial losses as the stock markets fell on the news that US unemployment rate soared to 8.5 percent in March. Gold for June delivery down $5.00 at $903.90 at 10:46 am EDT (1446 GMT) on the COMEX division of the New York Mercantile Exchange. Ranged from $911.80 to $897.20.
Gold cut losses after US government data showed unemployment rate soared to 8.5 percent in March, the highest since 1983, as employers slashed 663,000 jobs. Planned International Monetary Fund gold sales agreed by the G20 to raise money for low-income countries apply only to the 403 tonnes already approved last year and are not additional, said IMF spokesman on Friday.
In the current environment an additional 100 or 200 tonnes of gold sales per annum are almost insignificant compared to changes taking place in investment, jewellery demand and scrap supply, said John Reade, UBS head of precious metals. A Hong Kong-based capital raiser, hoping to buy mining assets at depressed prices, has established a new $1 billion investment fund focused initially on mining companies in Australia and Canada.
The gold/oil ratio was at 17.45 versus 17.18 in the prior session. Spot gold was at $902.50 an ounce, down 0.1 percent from its last quote in New York late Thursday. COMEX May silver down 22.0 cents, or 1.7 percent, at $12.805 an ounce, on profit taking following the previous sessions rally. Ranged $12.650 to $12.995. Spot silver at $12.83 an ounce, down 0.5 percent from its previous finish.
NYMEX July platinum down $5.50 at $1,160.30 an ounce, as market took a breather after recent gains based on optimism that US government aid will boost autocatalyst demand. Spot platinum at $1,150.00 an ounce, down 0.3 percent from its previous close. June palladium down $1.80 at $221.00 an ounce, tracking platinums weakness. Spot palladium at $218.00 an ounce, down 1.4 percent from its previous finish.
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