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NEW DELHI: Gold rose more than 1% to its highest level in two and a half months on Friday, as slower than expected US job growth in August pushed the dollar down, casting doubts on the Federal Reserve’s reduction schedule.
Spot gold was up 1.2% at $ 1,830.71 an ounce at 1:33 p.m. EDT (1733 GMT), after hitting its highest level since mid-June at $ 1,833.80, in way to achieve a fourth consecutive weekly gain.
US gold futures were up 1.2% to $ 1,833.7.
Job growth in the United States was well below expectations in August amid rising Covid-19 infections.
The dollar index slipped shortly after the report, making gold more attractive to those holding other currencies.
“Gold has received a welcome boost from a much weaker (jobs) ratio,” said Ole Hansen, Saxo Bank analyst.
“But the fact that gold has not broken through resistance at $ 1,835 may indicate some skepticism as to whether this means maximum growth and a delayed slowdown.”
Fed Chairman Jerome Powell said last week that if job growth continues, the Fed could start cutting back on asset purchases this year, but would remain cautious about raising interest rates. ‘interest.
“The gut reaction was positive for gold as a big failure with the headline number pretty much ruled out a drop in September,” said Ed Moya, senior market analyst at currency brokerage OANDA, the putting on the road to a break-up towards $ 1,850.
Some investors view gold as a hedge against higher inflation that can follow stimulus measures, while lower interest rates reduce the opportunity cost of holding unproductive bullion.
“The market’s attention will shift to the next FOMC meeting in September. We continue to see further upside risk for gold in light of our expectations of the USD weakening and yields holding. deeply negative real values, ”said Suki Cooper, Precious Metals Analyst at Standard Chartered. Bank.
Silver jumped 3.4% to $ 24.70 an ounce, while platinum rose 2.6% to $ 1,024.41. Palladium rose 1.1% to $ 2,425.70.
Spot gold was up 1.2% at $ 1,830.71 an ounce at 1:33 p.m. EDT (1733 GMT), after hitting its highest level since mid-June at $ 1,833.80, in way to achieve a fourth consecutive weekly gain.
US gold futures were up 1.2% to $ 1,833.7.
Job growth in the United States was well below expectations in August amid rising Covid-19 infections.
The dollar index slipped shortly after the report, making gold more attractive to those holding other currencies.
“Gold has received a welcome boost from a much weaker (jobs) ratio,” said Ole Hansen, Saxo Bank analyst.
“But the fact that gold has not broken through resistance at $ 1,835 may indicate some skepticism as to whether this means maximum growth and a delayed slowdown.”
Fed Chairman Jerome Powell said last week that if job growth continues, the Fed could start cutting back on asset purchases this year, but would remain cautious about raising interest rates. ‘interest.
“The gut reaction was positive for gold as a big failure with the headline number pretty much ruled out a drop in September,” said Ed Moya, senior market analyst at currency brokerage OANDA, the putting on the road to a break-up towards $ 1,850.
Some investors view gold as a hedge against higher inflation that can follow stimulus measures, while lower interest rates reduce the opportunity cost of holding unproductive bullion.
“The market’s attention will shift to the next FOMC meeting in September. We continue to see further upside risk for gold in light of our expectations of the USD weakening and yields holding. deeply negative real values, ”said Suki Cooper, Precious Metals Analyst at Standard Chartered. Bank.
Silver jumped 3.4% to $ 24.70 an ounce, while platinum rose 2.6% to $ 1,024.41. Palladium rose 1.1% to $ 2,425.70.
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