Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.6% but held above $1,200 as positive factory and jobless data eroded demand for safe havens ahead of the Good Friday market closures.

New orders for factory goods popped up in February after dropping for six consecutive months. Though meager, the 0.2% increase beat expectations and brought optimism that the U.S. manufacturing sector, battered by a strong dollar and weak overseas demand, may begin to turn around. The trade deficit narrowed to the smallest since late 2009, prompting Goldman Sachs to raise its Q1 growth estimate to 1% which remains far below the previous quarter's 2.2% increase in GDP.

New claims for unemployment benefits fell unexpectedly to 268,000 last week, the lowest since January, suggesting that the labor markets remain healthy despite a substantial slowdown in the U.S. economy during the first quarter. The data slightly softened disappointment in yesterday's ADP report showing just 189,000 private-sector jobs added in March.

The improved data brought some risk appetite back to the markets, with the Dow and S&P 500 adding 0.3% while the Global Dow gained 0.7%.

Traders await tomorrow's BLS release of the monthly nonfarm payrolls report to get a better sense the job market, and hence of the Fed's disposition toward raising interest rates. The consensus forecast is 245,000 jobs. If fewer were added, or if wage growth remains sluggish, the central bank will feel less pressure to raise rates by midyear.

The other precious metals tracked lower with gold. Silver fell 2.1% while platinum and palladium declined 1% and 0.3%, respectively.

At the Comex close: June slipped $7.30 to $1,200.90; May silver fell 36 cents to $16.70; July platinum declined $11.50 to $1,154.50; and June palladium dipped $2.55 to $746.30 an ounce.