Written by Sumit Roy  |

November 01, 2012

Market Wrap: Gold & Silver Trade Mixed After Strong Economic Data; WTI Oil Rises Ahead Of US Jobs Report

Details

Commodities mostly rose.

Commodities were mostly higher after a batch of stronger-than-expected economic reports from around the globe lifted investor sentiment. Gold and Brent underperformed, falling slightly.

In China, the official manufacturing PMI rose from 49.8 to 50.2 in October, putting it back above the 50 threshold that separates contraction from expansion and at the highest level since June. HSBC's China manufacturing PMI gauge—which focuses more heavily on smaller firms—rose from 47.9 to 49.5—an eight-month high.

The equivalent manufacturing index in the U.S.—ISM's manufacturing PMI—rose from 51.5 to 51.7, putting it at the best level since May.

Meanwhile, payroll processor ADP said that private employers added 158K jobs in October. The official employment figures will be released by the government on Friday and are expected to show a net jobs gain of 125K, while the unemployment rate is expected to tick up from 7.8 to 7.9 percent.

In other news, the number of people filing for unemployment benefits in the U.S. fell from 372K to 363K last week, slightly below what was anticipated.

Taking a look at currency markets, the U.S. Dollar Index was last trading up by 0.17 percent to 80.05.

• Gold and silver traded narrowly mixed today. The yellow metal was last trading down by $4.70, or 0.27 percent, to $1715.95, while the gray metal rose by $0.03, or 0.08 percent, to $32.28.
  
  Platinum gained $1.25, or 0.08 percent, to $1570.25 and palladium advanced $8.25, or 1.36 percent, to $613.
  
  "Gold prices... may be helped by a pickup in Indian festive buying ahead of Diwali and the Indian wedding season," said analysts at HSBC.
  
  
• Crude oil was mixed after the EIA's Weekly Petroleum Status report. Brent was last trading down by $0.70, or 0.64 percent, to $108, while WTI rose by $0.68, or 0.75 percent, to $86.90.
  
  U.S. crude oil inventories decreased by 2 million barrels, gasoline inventories increased by 0.9 million barrels, distillate inventories decreased by 0.1 million barrels and total petroleum inventories decreased by 0.1 million barrels last week, according to the EIA.
  
  
• Natural gas rose by $0.01, or 0.33 percent, to $3.70/mmbtu after the EIA reported that operators injected 65 billion cubic feet into inventories last week, close to expectations.
  
  
• The grain was mixed, as corn shed $0.02, or 0.2 percent, to $7.54/bushel, while soybeans added $0.15, or 0.94 percent, to $15.62 and wheat gained $0.04, or 0.43 percent, to $8.68.
  
  About 91 percent and 87 percent of the U.S. corn and soybeans harvests, respectively, have been completed, according to the USDA.
  
  
• Copper was last trading up by $0.04, or 1.02 percent, to $3.55/lb on Comex.
  
  "We've had the slightly better PMI data which is no doubt helping metals lift off the lows we had earlier this week," said Citi Analyst David Wilson. "The lows we saw on Tuesday were good buying points and the data is probably being a little more supportive, but obviously there is still a sense of caution."