Gold futures on the COMEX Division of the New York Mercantile Exchange rocketed higher on Friday, capping a 5-day winning streak, as the downbeat U.S. employment data spurred investors to the perceived safe-haven of gold. Silver surged to a fresh 30-year high, and platinum also rallied.
The most active gold contract for February delivery jumped 16.9 U.S. dollars, or 1.2 percent, to 1,406.2 dollars per ounce, which is quite close to its early November settlement record of 1,410.1 dollars an ounce.
The U.S. unemployment rate climbed to 9.8 percent in November, the first increase since August and the highest level of unemployment in seven months, compared to analysts'expectation of 9.6 percent. Meanwhile, analysts had expected a 150,000 increase in non-farm payrolls due to recent upbeat economic data. Instead, only 39,000 jobs were reported, according to U.S. Labor Department.
The horribly weak jobs data underscored the long road to recovery in the U.S., increasing the possibility that more quantitative easing and extended periods of lower interest rates are needed to address the high levels of unemployment. Investors flocked to the bullion market as a protection of their wealth against huge uncertainty in the economy.
Meanwhile, dollar tumbled broadly on the news, the weaker dollar is considered quite supportive to gold as it makes them cheaper to holders of other currencies, increasing its appeal as an alternative investment.
Traders said that mounting concerns over sovereign-debt problems in Europe continued to boost demand of gold as a safe- harbor. A trader pointed out that gold is simply gaining strength from all instability in the global economy.
Silver futures for March delivery jumped 69.9 cents, or 2.4 percent, to 29.271 dollars per ounce. January platinum rose 15.4 dollars, or 0.9 percent, to 1,728.5 dollars per ounce.
