Gold reaches $1,200 after US employment data spurs safe haven buying spurs

Gold prices surged today, finding enough support to stay above the key US$1,200/oz level as safe haven buying intensified following the US employment update, which showed larger than expected reductions in non-farm payrolls in July and an upward revision of last month’s job losses.
Data from the US Labor Department revealed a decline of 131,000 in non-farm payrolls, well above the expected 60,000. Last month’s decline of 125,000 was revised to 221,000. Private sector was shown to have created 71,000 new jobs after adding 31,000 jobs in June.
Gold has recently been supported by increased physical demand, which came from bargain hunters after the prices slipped below US$1,200/oz and Indian jewellers, which were buying bullion ahead of the festival season in that country.

This week, China’s People’s Bank said that it would allow more banks to export and import gold, spurring expectations of an increase in demand.

Chief Executive of FTSE 100 gold producer Randgold Resources (LON:RRS) Mark Bristow has started that South Africa has “run out of gold” and was “too deep to mine,” while gold itself was “damn scarce” and could be worth US$1,500/oz as soon as in 2011 as gold market was “ex-growth.” Bristow also said that he expected a “big correction” again next year.
Gold and silver improved to US$1,206/oz and US$18.48/oz respectively, while platinum slid to US$1,568/oz.
Gold and silver miners were on the rise today, while platinum producers declined. Majors Randgold Resources and African Barrick Gold (LON:ABG) added 1.5%, while midcap Petropavlovsk (LON:POG) gained nearly 2%.
Fresnillo (LON:FRES) climbed 1.5% and fellow silver producer from the FTSE 250 Hochschild Mining (LON:HOC) posted a small gain.
Lonmin (LON:LMI) slipped 3.2%. Peer Aquarius Platinum (LON:AQP) was sitting just below the opening level.
Specialty chemicals firm Johnson Matthey (LON:JMAT) added less than 1%.
Junior diamond producer Stellar Diamonds (LON:STEL) lost 10%. UK-registered China operating copper and gold miner Central China Goldfields (LON:GGG) followed, slipping 6%.
Uzbekistan focused gold miner Oxus Gold (LON:OXS) did better, climbing 5%.