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Gold Near October Highs As Poor NFP Quells Tapering

ByICN.com
Published 10/23/2013, 08:29 AM
Updated 07/09/2023, 06:31 AM
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Gold eased slightly from October highs posted this week in the wake of poor U.S. jobs data which sent the prices to the highest level since late September and took its toll on the U.S. dollar.

The precious metals markets traded in a narrow range after yesterday's 2% rally that saw the prices as high as $1,344.65 an ounce after data showed that the U.S. economy added fewer jobs than forecast in September, in report that was delayed for more than two week due to the partial shutdown of the U.S. government.

Spot gold was down 0.46% in early European trade around $1,333.00 an ounce at 08:37 GMT, compared with a session high of $1,642.15 and low of $1,329.75. Gold prices kicked off the trade in Asia at $1,339.30, near the strongest level in almost four week at $1,344.70 posted before the precious metal settled at $1,342.60 yesterday.

The infamous report, which was the first to be released since government shutdown, showed that the U.S. economy created only 148,000 jobs in September, trailing analysts` median estimate of 180,000 increase.

However, the unemployment rate eased to the lowest level since November 2008, from 7.3% to 7.2% last month.

Expectations ran high that the Federal Reserve will keep its economic stimulus on hold for an extended period in the wake of September`s weak non-farm payrolls figure.

The Fed's next two policy meetings scheduled for October 29-30 and December 17-18 will closely watched for more clues about the Fed`s next move.

The U.S. central bank accommodative monetary policy and especially its economic stimulus program, dubbed quantitative easing, often weakens the dollar to drive recovery, stripping gold off its attractive hedge appeal against inflation.

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