Written by Sumit Roy  |

October 05, 2012

Morning Call: Gold & Silver Sag As US Unemployment Rate Drops To Lowest Since 2009, NatGas Steadies

Details

Commodities trade mixed.

Commodities traded mixed after the release of better-than-expected U.S. employment figures for September. On net, 114K jobs were created in the month, which was equal to expectations. However, the unemployment rate unexpectedly dipped from 8.1 to 7.8 percent—the lowest level since January 2009.

Meanwhile, August's job gain was revised higher from 96K to 142K.

Finally, average hourly earnings rose by 0.3 percent, while the average weekly hours worked rose from 34.4 to 34.5.

The U.S. Dollar Index was last trading down by 0.06 percent to 79.31.

• Precious metals are falling, as some traders speculate that the strong jobs report reduces the likelihood that the Fed will increase the size of its quantitative easing program. However, gold and silver remain well within their recent ranges.
  
  The yellow metal was last trading down by $9.12, or 0.51 percent, to $1781.28, while the gray metal shed $0.21, or 0.61 percent, to $34.80.
  
  Platinum lost $12.13, or 0.71 percent, to $1706.87 and palladium fell by $8.75, or 1.3 percent, to $664.75.
  
  
• Crude oil is slightly lower as traders take profits after Thursday's surge. Brent was last trading down by $0.06, or 0.05 percent, to $112.52, while WTI lost $0.62, or 0.68 percent, to $91.09.
  
  
• Natural gas was last trading up fractionally to $3.41/mmbtu. Traders continue to eye the weather forecasts, which are becoming increasingly important as a driver for prices heading into the winter heating season.
  
  
• The grain complex is mixed. Corn was last trading down by $0.04, or 0.46 percent, to $7.54/bushel, while soybeans edged up by $0.03, or 0.21 percent, to $15.55 and wheat edged down by $0.02, or 0.26 percent, to $8.67.
  
  
• Copper was last trading close to unchanged at $3.79/lb on Comex.
  
  

What to Watch For:

8:30 a.m. ET: Nonfarm Payrolls/Unemployment Rate (September)

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