Gold prices rise as US jobs data weakens dollar and yields

Gold prices rose on Friday and were on track for their first weekly gain in four, as the dollar and bond yields fell after a weak US non-farm payrolls number put them once again on the trajectory for interest rate hikes beyond July. Suspicion arose. Spot gold was up 0.8% at $1,926.54 an ounce at 2:06 p.m. EDT (1806 GMT). The bullion was up 0.4% so far this week.

US gold futures rose 0.9% to $1,932.50. Labor Department data showed non-farm payrolls were well below expectations last month, but the unemployment rate retreated from a seven-month high amid fairly strong wage growth.

Benchmark 10-year US Treasury yields retreated from a more than four-month peak, while the dollar slipped 0.9% to a more than two-week low after data made gold attractive to other currency holders.

Traders were holding on to the condition that the Fed would raise interest rates this month, but they were becoming more skeptical about the prospect of further hikes.

“Gold bidding remains stubborn – trading higher even before the numbers. “Today’s report has given some respite to the bulls, at least short term,” said Tai Wong, an independent metals trader based in New York. are getting united. The report was not soft enough to hold such a rally today.”

Gold is sensitive to rising US interest rates, which increases the opportunity cost of holding non-yielding bullion.

But it came a day after another set of data showed that people filing new claims for unemployment benefits rose only marginally last week, while private payrolls rose in June, showing that a strong labor market remains.

Elsewhere, silver rose 1.5% to $23.08 an ounce, platinum by 1% to $910.77 and palladium by 0.6% to $1,248.66.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,