Gold, Silver Move Lower as EU Outweighs U.S. Jobs Data

Gold and silver were moving lower to close out 2012s first week of trading,
even as the U.S. Bureau of Labor Statistics reported a better-than-expected
200,000 increase in December nonfarm payroll employment and the lowest
unemployment rate 8.5% in almost three years. Stocks and precious metals were
being weighed down by EU sovereign debt concerns. Yields on Italian and Spanish
treasury bonds remain at elevated levels, according to one news report. Having
moved higher overnight, spot gold was trading some 0.43% lower at 10:20 a.m.
Friday, with a bid price of $1,614.40 and an ask price of $1,615.40. Spot gold
traded as high as $1,632.50 and as low as $1,612.50. The London afternoon
reference price fix came in at $1,616.50, or $17.50 an ounce higher than
Thursdays price fix, according to Kitco market data . Spot silver was down
around 2.1%, bid at $28.75 an ounce with an ask price of $28.85. The morning
high as of time of writing was $29.61 and the low was $28.60. Friday's
reference price was set at $29.40 in the London a.m., 48 cents an ounce higher
than Thursdays price fix. A stronger dollar/weakening euro is contributing to
the downward move in gold prices, according to BullionVaults London Gold Market
report. Liquidity remains locked up as the European interbank market continues
to malfunction. . .in the physical market, we continue to see steady buying of
gold. But this demand is more likely to provide support for gold on dips below
$1,600 rather than push it substantially higher, commented a Standard Bank
commodities strategist. Turning to U.S. exchange trading, gold and silver trusts
were moving lower. The SPDR Gold Trust (NYSE: GLD ) was showing losses of some
0.65%. The iShares Gold Trust (NYSE: IAU ) was down nearly 0.6%. The iShares
Silver Trust (NYSE: SLV ) was down around 1.9%. Gold and silver mining ETFs also
were closing out the week headed down. The Market Vectors Gold Miners ETF (NYSE:
GDX ) was nearly 0.6% lower. The Market Vectors Junior Gold Miners ETF (NYSE:
GDXJ ) was down some 0.35%. The Global X Silver Miners ETF (NYSE: SIL ) was
around 0.8% lower. Gold mining shares were heading lower. Agnico-Eagle Mines
(NYSE: AEM ) was showing losses of 0.25%. Barrick Gold (NYSE: ABX ) was down
some 0.6%. Eldorado Gold (TSE: ELD ) was down just 0.02%. Goldcorp (NYSE: GG )
was 1.8% lower. Newmont Mining (NYSE: NEM ) was down around 0.65%. NovaGold
Resources (AMEX: NG ) was down some 0.2% and more. Silver mining shares also
were heading south. Coeur dAlene Mines (NYSE: CDE ) was moving lower, down
around 0.45%. Hecla Mining (NYSE: HL ) was down more than 1.2%. Pan American
Silver (NASDAQ: PAAS ) was down around 0.2%. Silver Wheaton (NYSE: SLW ) was
showing losses of nearly 1.8%. Silver Standard Resources (NASDAQ: SSRI ) was
down 0.75%. As of this writing, Andrew Burger did not hold a position in any of
the aforementioned securities. Adrian Ash of BullionVault contributed to this
report.