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Gold prices up in Asia in rebound on physical demand

Published 04/08/2014, 12:16 AM
Updated 04/08/2014, 12:19 AM
Gold prices gain in Asia

Investing.com - Gold prices rose in Asia, rebounding on physical demand.

On the Comex division of the New York Mercantile Exchange, Goldfor June delivery traded at $1,301.40 a troy ounce, up 0.24%, after an overnight session high of $1,304.40 and up from a low of $1,295.90

Overnight, gold prices fell after investors locked in gains stemming from Friday's less-than-stellar March jobs report and sold the yellow metal for profits.

In the U.S. on Friday, the Department of Labor reported that the U.S. economy added 192,000 jobs in March, missing expectations for a 200,000 increase.

While not terrible, the jobs report was lackluster enough to prompt investors to rethink the pace at which the Federal Reserve will wind down its stimulus programs.

The Fed is currently purchasing $55 billion in bonds a month to spur recovery, a monetary policy tool known as quantitative easing that suppresses interest rates to prop up the economy, weakening the dollar as a side effect, which bolsters gold's appeal as a hedge.

Gold and the dollar trade inversely with one another.

Past and present rounds of quantitative easing have elevated gold prices since 2008.

Friday's data prompted investors to trade on the notion that the U.S. central bank will take its time dismantling its bond-buying program, though by Monday, profit taking wiped out the precious metal's gains.

Elsewhere on the Comex, silverfor May delivery traded up 0.14% at $19.935 a troy ounce, while copper for May delivery was up 0.21% and trading at $3.048 a pound.

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