Written by Sumit Roy  |

February 03, 2012

Morning Call: Gold ($1750), Silver ($34.05) Drop After Jobless Rate Slips To 8.3%; Oil, Copper Rally

Details

An extremely strong jobs report has a mixed impact on commodities.

IN TODAY'S HEADLINES..

A better-than-expected employment report for January is giving investor sentiment a boost today, but the safe haven precious metals sector is falling. Nonfarm payrolls increased by 243K in the month, well above the 160K that was expected. Private payrolls expanded by 257K, above the 160K anticipated.

The unemployment rate dipped to 8.3 percent, the lowest rate since February 2009. Meanwhile, average hourly earnings rose by 0.2 percent, matching expectations. Average weekly hours worked were steady at 34.5.

• A reduction in safe-haven demand amid the strong jobs report is taking a modest toll on precious metals. Gold was last trading down by $9.45, or 0.54 percent, to $1750.03/oz, while silver shed $0.26, or 0.75 percent, to $34.05. Platinum lost $1.75, or 0.11 percent, to $1628.75 and palladium added $1.50, or 0.21 percent, to $709.
  
  
• Crude oil is higher after the jobs figures, with Brent up by $1.27, or 1.13 percent, to $113.34/bbl, while WTI adds $0.74, or 0.77 percent, to $97.10.
  
  
• Natural gas is lower by $0.08, or 3.29 percent, to $2.47/mmbtu, reversing a portion of the prior session's advance.
  
  
• Grains are modestly higher, with corn last trading up by $0.01, or 0.19 percent, to $6.45/bushel, while soybeans rise by $0.07, or 0.58 percent, to $12.24, and wheat gains $0.06, or 0.83 percent, to $6.68.
  
  
• Copper prices are up by $0.05, or 1.22 percent, to $3.83/lb on Comex.
  
  

What to Watch For:

8:30 a.m. EST: Nonfarm Payrolls Report/Unemployment Rate (January)

10:00 a.m. EST: ISM Non-manufacturing Composite (January)

10:00 a.m. EST: Factory Orders (December)

1:00 p.m. EST: Baker Hughes Rig Count