Gold and silver fall as jobs data lessen metals’ appeal (GLD, SLV)

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June 5, 2009 9:30am NYSE:GLD NYSE:SLV

Gold and silver futures fell sharply Friday, extending their weekly losses as an upbeat U.S. employment report boosted hopes for an economic recovery and served to reduce the safe-haven investment appeal of precious metals.

Nonfarm payroll fell 345,000 in May, the Labor Department reported, but this drop was much less than the 500,000 expected by analysts surveyed by MarketWatch. The decline in payrolls was the smallest since September. A stronger dollar also weighed on commodities.

Gold for June delivery fell $23.70, or 2.4%, to $957.50 an ounce on the Comex division of the New York Mercantile Exchange. The more active August contract also lost 2.4%, surrendering $23.90 to stand at $958.40……

Meanwhile, July silver skidded 71.5 cents, or 4.5%, to $15.18 an ounce

……holdings in the SPDR Gold Trust (GLD) stood at 1,132.50 metric tons Thursday, unchanged from the previous day, according to latest data from the biggest exchange-traded fund backed by gold.

Holdings in the iShare Silver Trust (SLV) , the biggest silver ETF, stood at 8,605.43 metric tons, also unchanged from a day ago.

Full Story: http://www.marketwatch.com/story/gold-and-silver-lose-some-luster-after-jobs-report

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