Disappointing jobs data saps demand for most commodities; Gold inches higher on weak dollar

Gold inches higher, other commodities fall

NEW YORK — A disappointing jobs report sapped demand for most commodities Friday, but gold prices eked out a small gain as the dollar weakened.

Prices for silver, oil, soybeans and other commodities fell after the Labor Department said employers cut 263,000 jobs last month, up from 201,000 in August and worse than the 180,000 losses economists were expecting. The unemployment rate rose to 9.8 percent, as forecast.

A surprising decline in factory orders was also worrisome. The Commerce Department said factory orders fell 0.8 percent in August after a 1.4 percent gain in July. Analysts had been expecting factory orders to rise 0.7 percent.

The day’s news added to a recent string of worse-than-expected economic reports, which have led investors to believe that the recovery won’t be as quick and robust as hoped. That means demand for basic goods and materials will likely be weak for some time.

On the New York Mercantile Exchange, December silver lost 21 cents to $16.23 an ounce, while October platinum fell $6.40 to $1,275.60 an ounce.

December copper futures slipped 5.55 cents to $2.6815 a pound.

The dollar, considered a safe-haven investment, initially rose after the jobs report, which weighed on gold prices. Gold is often used as a hedge against inflation and a weak dollar. But by midmorning, the dollar retreated, helping to push gold slightly higher.

Gold for December delivery settled up $3.60 to $1,004.30 an ounce, after earlier falling to as low as $987. Prices ended the week up 1.3 percent.

Among soft commodities, sugar prices dipped 0.86 cent to 23.78 cents a pound. Cocoa and cotton prices also fell.

On the Chicago Board of Trade, November soybeans tumbled 33 cents to $8.85 a bushel.

December wheat futures fell 11.5 cents to $4.4125 a bushel, while corn for December delivery fell 7 cents to $3.3350 a bushel.

Oil prices finished slightly lower on the Nymex. Light, sweet crude for November delivery fell 87 cents to $69.95 a barrel, after falling to as low as $68.32 earlier in the day.

Gasoline futures fell 1.7 cents to $1.7409 a gallon, and heating oil futures lost 3.06 cents to $1.7968 a gallon.