Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
Gold fell as haven demand ebbed after a report showed U.S. job gains were revised higher in prior months, giving relief to investors rattled by disappointing economic data this week.
Total nonfarm payrolls climbed 136,000 in September, a government report showed Friday. That compares with the 145,000 estimate of economists surveyed by Bloomberg. Revisions were a bright spot, adding 45,000 jobs for the prior two months.
The job figures may give some comfort to markets after a string of weaker-than-expected data had boosted demand for gold as a haven this week. Bullion’s rally this year has encountered some turbulence, with conflicting market signals helping send the metal to its first monthly loss in five in September.
“You look at the revision and the economy is better than what was expected based on the revision,” Phil Streible, senior market strategist at RJO Futures in Chicago, said by phone.
Bullion futures for December delivery fell 0.6% to $1,504.30 an ounce at 9:10 a.m. on the Comex in New York.
Average hourly earnings rose 2.9% from a year earlier, the weakest in more than a year and missing estimates. The jobless rate unexpectedly dropped to 3.5% from 3.7%, for the lowest since December 1969.
“Trading for the shining metal has been choppy on the back of this, and given that the big picture, the unemployment number has ticked lower, so it doesn’t really tell us a weak labor market,” Naeem Aslam, chief market analyst at ThinkMarkets, said in an emailed note. “This means not too much tailwind for the gold price.”
(By Justina Vasquez)
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