Gold Edges Up Before Jobless Report

August 8, 2013 at 09:59

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Gold advanced before a report today that may show U.S. jobless claims increased, potentially delaying moves by the Federal Reserve to slow the pace of bond purchases. Silver and platinum climbed.

The metal tumbled 23 percent this year amid speculation the Fed will wind down its quantitative-easing program. Fed Bank of Cleveland President Sandra Pianalto said yesterday there has been “meaningful improvement” in the labor market and tapering may be warranted if it continues to strengthen. Jobless claims rose to 335,000 last week, after falling to a more than five-year low in the previous week, according to the median of estimates compiled.

“Today’s jobless claims are tipped to be weaker than expected,” said Jonathan Barratt, the chief executive officer of Barratt’s Bulletin in Sydney. “The market’s reading the fact that stimulus will be with us for a little bit longer.”

Dallas Fed President Richard Fisher said on Aug. 5 the central bank is closer to slowing bond buying and warned investors not to rely on stimulus. Fed Bank of Chicago President Charles Evans said Aug. 6 he “would clearly not” rule out a decision to begin curbing bond purchases in September.

Assets in the SPDR Gold Trust fell to 910.53 metric tons yesterday, the lowest since February 2009, according to data on the fund’s website. Holdings are down 440.29 tons this year.