Marginal gains for precious metals

Job report had just a slight bullish impact on gold prices

Bullion prices ended little higher at Comex on Friday, 09 January 2015. A U.S. employment report that was close to market expectations had just a slight bullish impact on gold prices. A lower U.S. dollar index on Friday morning was also a slightly bullish outside market force for the precious metals.

February Comex gold was up $6.80 at $1,214.90 an ounce.

March Comex silver last traded up $0.02 at $16.40 an ounce.

Arguably the most important U.S. economic data point of the month came in close to market expectations, as the key non-farm payrolls number of the December employment report was up 252,000. The market place expected non-farm jobs to have risen by 240,000 workers. Gold prices up-ticked just modestly, likely due to concerns the non-farm jobs number would be much higher, following last month's reading that was above 300,000.

However, gains in gold were limited by the rise in U.S. stock index prices following the jobs report. A feature in the market place late this week is the marked increase in investor and trader risk appetite, evidenced by the big rebounds in world stock markets after strong selling pressure seen earlier this week. The European Union got another very low inflation reading this week, which further raised fears of price deflation. Traders also took note of dovish remarks from a U.S. Federal Reserve official, FOMC voting member Charles Evans, who said the Fed should not raise interest rates in 2015.

In overnight news, China's consumer inflation was reported at up 2% for the year 2014, which is well below the government's inflation target of 3.5%. Asian stock markets were supported on the news, which suggests China's central bank can go easier on its monetary policy initiatives.

Other U.S. economic data out Friday included the monthly wholesale trade report.

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