Metals – Market Recap – Oct 2,2009

Bloomberg (Reported 10.2.09):
“Oct. 2 (Bloomberg) -- Gold, little changed below $1,000 an ounce in London today, may fall as lower oil prices curb demand for the metal as a hedge against accelerating consumer prices.

Crude-oil futures dropped as much as 1.7 percent in New York on concern that the U.S. economic recovery may stall, limiting fuel demand in the world’s biggest economy. Gold is set for a sixth weekly gain in seven as oil has climbed 5.9 percent this week.” Gold May Fall as Lower Oil Prices Curb Inflation-Hedge Demand

Reuters (Reported 10.2.09):
“LONDON (Reuters) - Gold inched down on Friday, but remained within striking distance of the key $1,000 an ounce as the dollar edged up against a basket of currencies and the market held its breath ahead of the U.S. payrolls data.

Traders said the market was vulnerable to the downside due to a heavy build up of long positions and after bullion failed to stay above $1,000 an ounce.” Gold edges down ahead of U.S. payrolls data

NS Futures (Reported 10.2.09):
“The markets have partially priced in a slightly weak us number…”
”With December gold just ahead of the US payroll report sitting roughly $13 an ounce below this week’s high and roughly $27 an ounce below the September highs, the overbought condition of the gold market has probably been slightly tempered. However….” Full Report