The Gold price rose for a third straight day today on the back of weak US data which sent the local currency lower against most majors.
At 7.27pm (GMT) gold was trading at US$1,347 an ounce up from USA$1,340 in yesterday’s trading.
Data out of America showed Non-farm productivity fell 0.5 percent last month against analysts’ expectations of a 0.5 percent rise which had people exiting the US dollar and parking their money in safe haven investments such as gold.
A growing number of analysts are also predicting the US Federal Reserve will hold off raising interest rates this year which is also currently supporting the gold price.
“Finding support from a weaker US dollar, falling bond yields and somewhat lower rate hike expectations in the US — and despite firm stock markets — gold has climbed back up,” analysts at Commerzbank AG (DE:CBKG) noted.
Norbert Ruecker, head of commodities research at Julius Baer noted that gold looks set for more gains if you look at the futures market and the mood surrounding investors
“For us the big picture remains basically unchanged for gold. Sentiment seems to be very bullish, if you look at the futures positioning and record inflows into gold products,” he said.