Gold rises despite record US job growth

Archive image of a gold bar in a store in Dubai, UAE. April 11, 2006. REUTERS / Tamara Abdul Hadi

By Shreyansi Singh

Jul 2 (Reuters) – Gold reversed course and rose on Thursday as the dollar weakened, although the metal traded below an eight-year high in the last session as prospects for economic recovery improved after Released data showing record job growth in June.

* Spot gold rose 0.4% to $ 1,777.04 an ounce at 1,742 GMT, holding close to the eight-year high of $ 1,788.96. Gold futures in the United States rose 0.6% to $ 1,790 an ounce.

* Nonfarm payrolls increased by 4.8 million jobs in June, according to Labor Department monthly employment data, the highest since the government began keeping records in 1939.

* “Generally, the dollar should strengthen with these strong numbers, but it hasn’t, which means people are still concerned that the economy is not out of the woods,” said Edward Meir, analyst at ED&F Man. Capital Markets.

* The dollar showed little change, having fallen to a one-week low against a basket of currencies earlier in the session.

* “You can’t judge the economy with a single one-day data point … People think the economy is recovering and that the Federal Reserve will not have to stimulate as much,” said Michael Matousek, head of trade. from US Global Investors.

* However, the minutes from the last Federal Reserve meeting released on Wednesday pointed to the fact that “it will keep rates low until 2022, therefore that still provides a demand for gold,” he added.

* Fed officials are looking at reviving a promise from the Great Recession era to keep interest rates low until some conditions are met.

* Gold bullion, which does not offer a yield, has risen 17% so far this year, driven by stimulus measures and cuts in interest rates by central banks.

* Among other precious metals, palladium closed stable at $ 1,905.10 per ounce, platinum fell 0.7% to $ 810.10 per ounce, while silver rose 0.2% to $ 17.97 per ounce. ounce.

(Edited in Spanish by Carlos Serrano)

Written by Argentina News

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