Strong US Data Puts Pressure on Gold

Published by Filipe R. Costa on Fri, 02/11/2012 - 11:13
gold falling

Daily Market Commentary for November 2: US economic data continues to impress investors and was the reason behind yesterday’s rise. The FTSE ended 1.37% higher and the S&P rose 1.09%. Gold continues under heavy pressure and after hitting $1,725 has been brought down to the current $1,708 level it trades.

Economic data has been showing some improvement and after all disappointment coming from corporate earnings investors are happy to embrace some good news. ADP data showed a strong month with 158k jobs added. The number was just little above expectations shown on Bloomberg but the truth is investors were afraid the report could show some weakness. Jobless claims added to the positiveness as claims dropped from 372k to 363k. Prior to the announcement analysts were anticipating 369k. The ISM manufacturing index was also above expectations with a reading of 51.7. Consumer confidence was below the consensus expectation of 74.0, but at 72.2 it is still a strong number and an increase over the last report.

With a busy day in terms of economic data, positive reports were the trigger for investors. The Dow was nearing 13,000 but is now trading at 13,225 and the promise is to rise even more if today’s non-farm payrolls adds to the positive case. Gold is under heavy pressure as positive economic reports don’t favour the metal.

Name Last price Close Price % 5-Day % YTD %
FTSE MIB 01/11/2012 15806.75 1.72 1.79 4.75
Nasdaq 100 Index 01/11/2012 2687.52 1.5 0.81 17.99
FTSE 100 01/11/2012 5861.92 1.37 0.98 5.2
CAC 40 01/11/2012 3475.4 1.35 1.87 9.99
S&P 500 01/11/2012 1427.59 1.09 1.02 13.52
Dow Jones Industrial Average 01/11/2012 13232.6 1.04 0.99 8.31
DAX (Xetra) 01/11/2012 7335.67 1.03 1.88 24.37
Crude oil (Light Sweet) Composite 01/11/2012 8689 0.89 0.82 -12.23
IBEX 35 01/11/2012 7886.4 0.55 1.38 -7.94
Nikkei 225 01/11/2012 8946.75 0.21 -1.2 5.81
GBP/USD - US $ per £ 01/11/2012 1.6133 0.01 0.09 3.88
EUR/GBP - £ per Euro 01/11/2012 0.8025 -0.14 -0.04 -3.68
EUR/USD - US$ per Euro 01/11/2012 1.2947 -0.14 0.06 -0.05
Crude oil (Brent) Composite 01/11/2012 10730 -0.22 -0.28 -0.1
Gold (LBM) $ 01/11/2012 171790 -0.35 0.18 9.64