Bright day for precious metals

Gold futures rally for a fifth session in a row

Bullion prices ended substantially higher on Thursday, 7 January 2016 at Comex. Gold futures rallied on Thursday for a fifth session in a row, as global-market and geopolitical turmoil triggered more safe-haven buying. The precious metal was one of the few bright spots on a day when concerns over the Chinese economy pummeled equity markets and commodities around the world. Adding to this, tensions in the Middle East and uncertainty surrounding North Korea have prompted investors to buy the metal.

February gold climbed $15.90, or 1.5%, to settle at $1,107.80 an ounce on Comex. Prices had already posted gains in each of the last four sessions. March silver rallied along with gold, tacking on 36.8 cents, or 2.6%, to end at $14.344 an ounce.

Gold's gains on Thursday came as China's stock market tumbled on a currency devaluation that raised further questions about the world's No. 2 economy and fueled concerns over capital flight.

Gold is traditionally seen as a safe-haven asset, as it tends to maintain a stable level of value, and investors often buy gold during times of heightened social, political or economic uncertainty.

World stock markets are under solid selling pressure this week as trader and investor anxiety in the world market place remains elevated. China's stock market traded for only a half-hour on Thursday, dropping 7%, and then circuit-breakers kicked in to halt trading for the rest of the session. It was the second time this week that trading in Chinese stocks was halted by circuit-breakers. Asian investors were also spooked when Chinese monetary authorities devalued the yuan again. The heavy selling in China quickly spread throughout Asia, including Japanese, Hong Kong and Australian stock markets. European stock markets also saw strong selling pressure Thursday. U.S. stock indexes are also sharply lower on Thursday and hit three-month lows.

U.S. economic data released Thursday did not impact that precious metals appreciably, as has been the case all week. With all the other markets-moving events this week, traders and investors are less-focused on Friday's U.S. jobs report, which is arguably the most important U.S. economic report of the month. Friday's non-farm payrolls component of the Labor Department's employment report is expected to show a 210,000 rise in December. Still, the jobs data is likely to have a significant impact on many markets.

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