Gold Rises on Weaker US Jobs Data

Gold rose after economic data showed applications for U.S. unemployment benefits increased more than forecast last week.

Jobless claims increased by 12,000 to 290,000 in the week ended Nov. 8, the highest since Sept. 20, a Labor Department report showed today in Washington. The median forecast of 53 economists surveyed by Bloomberg called for 280,000. Continuing claims also rose.

Gold for December delivery added 0.5 percent to $1,165.40 an ounce by 8:33 a.m. on the Comex in New York. Bullion for immediate delivery gained 0.3 percent in London, according to Bloomberg generic pricing.

While the World Gold Council said bullion demand fell to an almost five-year low in the third quarter, it’s “quite optimistic” on the outlook for jewelry buying.

Global bullion demand declined 2.5 percent from a year earlier to 929.3 metric tons in the third quarter, the lowest since the last quarter of 2009, the London-based World Gold Council said today in a report. Jewelry consumption slipped 4 percent, while bar and coin purchases dropped 21 percent, it said.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza