Breaking Market Updates present a daily selection of the most important financial news stories from around the globe, with a specific focus on the precious metals and stock markets. To view Breaking Market Updates Archives, click here.

July 2: Gold falls on stronger dollar, jobs data

Source: Marketwatch

New York -- Gold futures fell Thursday, ending near $930 an ounce as the U.S. dollar strengthened against most of its rivals after a disappointing U.S. jobs report boosted demand for the dollar, reducing gold's appeal as an investment alternative. The dollar rose after the Labor Department reported Thursday nonfarm payrolls shrank by 467,000 in June, higher than the 325,000 decline expected by economists surveyed by MarketWatch. Other metals also moved lower. August gold ended down $10.30, or 1.1%, at $931 an ounce on the Comex division of the New York Mercantile Exchange. The loss came on the heels of gold's 1.5% gain Wednesday.

"The U.S. dollar was seen benefiting from" the jobs data, said Jon Nadler, senior analyst at Kitco Metals Inc. "Thus, gold unwound the bulk of yesterday's gains." With Thursday's loss, gold futures ended the week down 1.1%. Trading is closed Friday in observance of the Independence Day holiday. See full story.

July 1: Gold rises for first day in three as data deflate dollar

Source: Marketwatch

New York -- Gold futures rose back above $940 an ounce Wednesday, rebounding on the heels of two losing sessions as the dollar fell against the euro following a report showing further contraction in U.S. private-sector jobs. A weaker greenback effectively raises gold's appeal as an alternative investment. Gold prices are denominated in dollars. Meanwhile, holdings in the biggest gold exchange-traded fund fell for the first session in four, adding downward pressure on gold.

On the Comex division of the New York Mercantile Exchange, August gold gained $13.90, or 1.5%, to end at $941.30 an ounce. The metal ended last month's trading down more than 5%. The SPDR Gold Trust saw its holdings drop to 1,120.55 metric tons Tuesday, down 5.19 metric tons from a day earlier, according to data from the fund. The decline of 473,000 in the number of private-sector jobs for June, based on a sampling of data compiled by payrolls-processing giant Automatic Data Processing, was close to the consensus forecast of economists calling for a decline of 498,000. See full story.

June 30: Gold down after home-price data, falls 5.3% in month

Source: Marketwatch

New York -- Gold futures fell Tuesday as the dollar strengthened after the release of lackluster data on consumer confidence and movements in U.S. home prices, reducing gold's investment appeal. The precious metal ended June trading down 5.3%, weighed down by gains in the dollar and by a lessening of inflation worries. Gold had rallied 10% during May, the biggest monthly gain in six months. August gold futures fell $13.30, or 1.4%, to close at $927.40 an ounce on the Comex division of the New York Mercantile Exchange. For the quarter, gold rose 0.5%, which would put its gain in the first half of 2009 at 4.9%.

"Over the last month gold has suffered from a renewed appetite for risk," said Brian Kelly, chief executive of Kanundrum Research, a commodities and macroeconomic research firm. "The market is also adjusting to new inflationary expectations." If gold is to head back toward $1,000 an ounce, "the heavy lifting must be done by a weaker dollar," he added. See full story.

June 29: Gold ends down slightly as dollar fluctuates

Source: Marketwatch

New York -- Gold futures ended Monday's session down slightly, falling for the first session in fifth as the U.S. dollar fluctuated against its major rivals. Copper moved higher. August gold fell 30 cents to end at $940.70 an ounce on the Comex division of the New York Mercantile Exchange. It rose to $943.20 earlier. The metal ended last week's trading up for the first week in four. For the month, it's still down about 4%.

Gold's "primary focus remains on U.S. dollar movements, but volatility could also come this week from the cyclical process of quarter-end book-squaring processes," said Jon Nadler, senior analyst at Kitco Metals Inc. For the second quarter, gold has gained about 2%, as the dollar weakened against its major rivals. Gold is also up about 6% in the first half of the year. Trading is expected to remain "choppy" this week, said James Moore, an analyst at TheBullionDesk.com, "although overall the metal appears comfortable in the recent $930 to $950 range." See full story.

June 26: Gold rises above $940, marking first weekly gain in four

Source: Marketwatch

New York -- Gold futures rose Friday, marking their first weekly gain in four as a weaker U.S. dollar and record-low interest rates boosted the metal's investment appeal. The dollar was under renewed pressure Friday after China's central bank reiterated a veiled call to lessen the currency's role as the world's reserve currency. The Federal Reserve said Wednesday its key interest rate will remain near zero "for an extended period." August gold rose $1.50, or 0.2%, to end at $941 an ounce on the Comex division of the New York Mercantile Exchange. It rose to $949 earlier in the session. The June contract, which expires at the end of Friday's trading, gained $1.60, or 0.2%, to $940.70.

Gold prices, as gauged by front-month contracts, rose 0.6%. For the month, it's still down nearly 4%. "The precious metals complex has been trading modestly higher as the dollar lost ground after the Fed announced it would keep rates low," said James Moore, a precious metals analyst at TheBullionDesk.com, in a note. "But given the scale of longs already in place and the slow pace of physical demand, gold is still vulnerable to profit taking short-term and may look to consolidate in the $910 to $950 area before pushing towards $1000 again," he added. See full story.

June 25: Gold gains for third day on outlook for low interest rates

Source: Bloomberg

New York -- Gold rose for a third day on speculation that record-low U.S. interest rates will boost demand for the metal as an alternative investment. Silver also advanced. The Federal Reserve yesterday left its key bank-lending rate target at zero to 0.25 percent and said it is likely to remain at “exceptionally low levels” for an “extended period.” The central bank also reiterated its plan to buy as much as $1.75 trillion in U.S. Treasury securities and bonds as a way to ease credit. “If interest rates remain low, it’s encouraging for gold,” Bernard Sin, the head of currency and metals trading at Swiss refiner MKS Finance SA, said by telephone from Geneva.

Gold futures for August delivery rose $2.60, or 0.3 percent, to $937 an ounce at 12:44 p.m. on the New York Mercantile Exchange’s Comex division. Bullion for immediate delivery rose $5.01, or 0.5 percent, to $936.41 an ounce at 5:45 p.m. in London. Silver futures for July delivery rose 2.8 cents, or 0.2 percent, to $13.97 an ounce in New York. Silver for immediate delivery in London climbed 9.25 cents, or 0.7 percent, to $13.9575 an ounce at 5:46 p.m. local time. See full story.

June 24: Gold rises on speculation renewed inflation will dpur demand

Source: Bloomberg

New York -- Gold rose for a second day on speculation that the Federal Reserve will spur inflation by continuing to buy Treasury securities in a bid to revive the economy. Silver also advanced. Analysts expect the Federal Reserve to keep a $300 billion program of buying Treasuries as a way to loosen credit by adding to the money supply. Fed policy makers are meeting today. Some investors buy gold as a hedge against inflation. The U.S. consumer price index has declined 2.7 percent since September, Labor Department data show.

“There’s a lot of anticipation to see whether the Fed is going to continue printing money,” Sagiv Peretz, a Finotec Trading U.K. senior dealer, said by telephone from London. “If they will do that, it might support gold because of expectations of inflation further down the road.” Gold futures for August delivery rose $10.10, or 1.1 percent, to $934.40 an ounce on the New York Mercantile Exchange’s Comex division. The most-active contract advanced 0.4 percent yesterday. See full story.

June 23: Gold futures finish slightly higher ahead of Fed

Source: Marketwatch

New York -- Gold futures ended a volatile session up slightly Tuesday, recouping a bit of the previous session's slide, but the precious metal remained stuck in a range amid hesitations ahead of a monetary policy statement from the Federal Reserve Wednesday. "I would be surprised if they did anything dramatic. The Fed is trying to nurse the recovery along without killing off the housing market again. In terms of gold, it keeps the uncertainty up there a bit. That keeps a floor (under prices)," said Michael Wallace, global market strategist at Action Economics. Gold for August delivery gained $3.30 to end at $924.30 an ounce on the New York Mercantile Exchange. It earlier rose as high as $927.30 and dropped to a low of $913.20.

On Monday, the contract dropped $15.20, or 1.6%, to end at $921 an ounce. The June contract ended at $920.60, the weakest settlement since May 11. "You had a pretty steep drop in stocks yesterday, and then other indicators like the VIX, the volatility index, gapped up, which was also supportive of gold," Wallace said. See full story.

June 22: Gold falls to six-week low as oil slumps, dollar strengthens

Source: Marketwatch

New York -- Gold futures retreated Monday to the lowest level in nearly six weeks, as falling oil prices and a stronger dollar reduced the precious metal's appeal as a hedge against inflation and a weaker currency. Crude oil slumped nearly 4% to the lowest level in two weeks, after the World Bank predicted that the global economy will shrink 2.9% this year, a steeper fall than the 1.7% contraction it predicted in March. On the Comex division of the New York Mercantile Exchange, gold for August delivery fell $15.80, or 1.7%, to $920.40 an ounce. The June contract fell as low as $919, the weakest level since May 13.

The metal ended last week's trading down for a third straight week, the longest losing streak in two months. "Uncertainty brings out fund sellers looking at lower crude," said George Gero, a precious-metals trader for RBC Capital Markets. "Next support area could be $915 with resistance at $950 again." See full story.

June 19: Gold ends slightly higher as dollar falls

Source: Marketwatch

New York -- Gold futures ended slightly higher Friday as the dollar fell against most of its major rivals, raising the precious metals' investment appeal. The fractional gains notwithstanding, the precious metal ended the week down for the third week, the longest losing streak in two months.

On the Comex division of the New York Mercantile Exchange, August gold rose $1.60, or 0.2%, to end at $936.20 an ounce. The June contract also ended slightly higher at $935.60. Gold lost 0.5% this week. The third weekly loss put the losing streak the longest since the week ended April 17. Gold "is likely to find further scaled-down support as investor dip-buying continues," said James Moore, a precious metals analyst at TheBullionDesk.com. See full story.