Oil dropped to a seven-week low as an employment report raised concern that U.S. fuel demand will slow and Iran agreed to resume talks on its nuclear program. Futures fell as much as 2.4 percent after the government reported on April 6 that the U.S. created 120,000 jobs in March, below the median forecast of 205,000 in a Bloomberg survey. The Scheduled negotiations between Iran and the United Nations Security Council members plus Germany increased optimism that the Persian Gulf nation won’t act to disrupt supplies.
After the U.S missed the estimates job data, Gold mount up for a fourth day to feb.23 and renowned as the longest rally in more than a month. In the speculations, Federal Reserve may take more steps to spur growth and weakening the dollar. Spot gold rose as much as 0.9 percent to $1,654.90 an ounce, the highest level in a week, and was at $1,652.72 at 11:52 a.m. in Singapore.
The dollar cut down for a third day against a six-currency basket as well as the yen as the Bank of Japan refrained from adding to monetary easing. In the previous month, nonfarm payrolls rose 120,000, the smallest gain in five months, compared with economists’ forecast for 205,000. Central bank policy makers saw no need for more stimuli unless the economy falters based from the data on April 6.The Fed bought $2.3 trillion of debt in two rounds of so-called quantitative easing from 2008 to June 2011. June-delivery gold rose as much as 0.7 percent to $1,655.90 an ounce on the Comex in New York, and traded at $1,652.10. Holdings in gold-backed exchange-traded products were 2,397.577 metric tons yesterday, within 0.6 percent of a March 13 record.
On the month of May crude delivers fell $1.33, or 1.3 percent, to $101.98 at 1:50 p.m. on the New York Mercantile Exchange. The contract touched $100.81, the lowest level since Feb. 15. Prices have climbed 3.2 percent this year. Brent oil for May settlement dropped $1.14, or 0.9 percent, to $122.29 a barrel on the London-based ICE Futures Europe exchange. Commodity and equity markets were closed in New York and London on April 6 for Good Friday. European stock markets are shut today for holidays, along with Australia, New Zealand, Hong Kong, Thailand and South Africa.
Copper in London declined to the lowest level in a month as investors bet demand from the two largest users may be curbed after China’s consumer prices rose and U.S. jobs climbed less than expected. The metal for delivery in three months fell as much as 1.7 percent to $8,221 a metric ton on the London Metal Exchange, the lowest price since March 7, before trading at $8,318.50 by 10:13 a.m. Shanghai time. The bourse was closed for two days due to public holidays. Copper for delivery in July was little changed at 59,850 yuan ($9,486) a ton on the Shanghai Futures Exchange.
U.S. nonfarm payrolls rose by 120,000 last month, the smallest gain in five months and less than the most pessimistic estimate in a Bloomberg survey of economists, according to a government report on April 6. May-delivery copper on the Comex rose 1.4 percent to $3.771 a pound, after falling to a seven-week low yesterday. China’s customs department is going to release provisional commodities trade data for March today. On the LME, aluminum gained 0.4 percent to $2,117 a ton, and zinc rose 0.8 percent to $2,019.25 a ton. Lead declined 0.3 percent to $2,053 per ton. Nickel fell 1 percent to $18,218 a ton and tin dropped 0.3 percent to $23,100 a ton.