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Gold price up 1% on new US jobs data

Gold prices gained on Thursday after US labor data showed a rise in weekly jobless claims last week, with market now shifting focus to nonfarm payroll figures for more cues on the Federal Reserve’s policy path.

Spot gold was up 1.1% at $2,061.26 per ounce by 11:45 a.m. ET, on its way towards a fourth straight session of gains. US gold futures rose by 0.5%, trading at $2,077.50 per ounce.

[Click here for an interactive chart of gold prices]

Limiting gains in bullion, the US dollar index opened the market 0.2% higher, staying close to a one-month high.

On Thursday, the US Labor Department said initial jobless claims increased to a seasonally adjusted 224,000 for the week ended Jan. 27.

A separate report cited by Reuters showed that US worker productivity grew faster than expected in the fourth quarter.

Gold is still in a “bad hangover” after the Fed’s reaction but a small rally is happening because of the initial claims number, said Phillip Streible, chief market strategist at Blue Line Futures, in Chicago.

Other metals like platinum, copper, silver are all down over 1%, which may prohibit gold’s chance of any sustained recovery, he added.

Investors’ attention now turns to Friday’s US nonfarm payrolls for further clarity on the Fed’s interest rate path.

“Gold is expected to trade with a neutral to bearish bias, though losses could be limited ahead of the US nonfarm payroll report due on Friday,” said Jigar Pandit, head of commodity and currency business at BNP Paribas’ Sharekhan.

(With files from Reuters)

Source: MINING.COM – Read More