We have updated our privacy policy and terms & conditions. Find out more here.

Gold surges despite a strong greenback on weak NFP

CommoditiesMay 04, 2012 05:15PM GMT Add a Comment
Share with a Friend
Thanks for sharing
Emails have been sent to:
To send more emails click here
Investing.com - Gold futures traded higher Friday, as sharply lower than expected nonfarm payroll numbers and euro zone political uncertainty drove investors to the precious metal, despite a strong U.S. dollar

On the Comex division of the New York Mercantile Exchange, Gold futures for June delivery traded at USD1642.15 a troy ounce climbing 0.45%.

It earlier traded at a session low USD1626.85 a troy ounce. Gold was likely to find support at USD1626.85 and resistance at USD1672.15.

Igniting the positive gold sentiment, U.S. nonfarm payrolls advanced less-than-expected last month, official data showed on Friday.

The U.S. Department of Labor reported non-farm payrolls climbed to a seasonally adjusted 115K, from 154K in the preceding month whose figure was revised up from 120K.

Economists had expected U.S. non-farm payrolls to rise 170K last month.
Adding to the uncertainty, France and Greece will hold elections over the weekend.

French voters will decide on the final round of the countries presidential race and Greece will be voting on a new parliament.

Francois Hollande, the Socialist challenger for the French highest office, is the leading incumbent. He is calling for a re-negotiation of the budget pact with European leaders, saying it needs to place more of an emphasis on growth. He has rejected Sarkozy’s plan to increase sales taxes to fund lower payroll charges.

Meanwhile in Greece, neither of the two major political parties, New Democracy and Socialist Pasok is likely to win the majority.

In other news, physical demand remained subdued, as buyers in India were put off by a weaker rupee and high prices.

US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.39% to trade at USD79.56.

Elsewhere on the Comex, Silver for July delivery soared 1.00% to trade at USD30.310 a troy ounce while Copper for July delivery gave back 0.43% to trade at USD3.720 a pound.

Gold surges despite a strong greenback on weak NFP

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?

Successfully Reported

Thank you. This comment has been flagged for a moderator.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.