Gold rises on expectation of lower interest rates after weak US employment report

Gold prices rose on Monday, trading at a three-month high, as US employment data raised expectations that interest rates would remain low for the time being, a fall in the dollar and a stronger appeal, Who does not pay interest.

Spot gold climbed 0.4% at 1022 GMT to $ 1,836.80 an ounce, after reaching a high of $ 11,900 on February 11. Gold futures in the United States were up 0.4% at $ 1,838.10.

“This morning we are seeing a bridge on non-agricultural payroll numbers on Friday, which was surprisingly disappointing. Clearly, both the US dollar and yields remain defensive, supporting gold, ”said independent analyst Ross Norman.

US nonfarm payroll data showed on Friday that job growth unexpectedly slowed in April, pushing the dollar to a two-month low, making gold less expensive for other holders.

At-least-non-non-payroll payroll data had changed the impact of a breaking band for the world’s largest economy and investors’ hopes for stronger bets that would strengthen the US Federal Reserve’s policy. Monetary earlier than expected.

The US central bank has vowed to keep interest rates low until inflation and employment take place. Lower interest rates reduce the opportunity cost of holding bullion, which does not pay interest.

Senior analyst Jeffrey Haley said in a note, “After a week, gold has advanced in advance, the weak US dollar has fueled and the Fed is feared the Fed will soon deteriorate.”

Among other precious metals, palladium rose 1.3% to $ 2,964.85 an ounce, following an all-time high last week over concerns about tight supplies. Silver was up 1.1% at $ 27.74, while platinum was up 1.3% at $ 1,265.51.

Reuters

related

notes

notes