Investing.com – Gold rose to session highs on Friday, buoyed by the return of safe haven demand, as the U.S. dollar fell to a seven-month low, after data showed that U.S. economy created fewer jobs than expected last month.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange rose $9.94 or 0.79%, to $1,276.92 a troy ounce.
Gold hit a session high of $1,278.95 just shy of six-week highs, as an unexpected dip in U.S. job growth, fuelled concerns about the strength of the U.S. economy, increasing demand for gold, which is traditionally used as a safe haven against economic uncertainty and volatility.
The U.S. economy added 138,000 jobs in May, well below forecasts of 185,000 new jobs while the unemployment rate fell to a 16-year low of 4.3%, the Labor Department said on Friday.
Gains in gold were capped, however, as the soft headline jobs number did little to derail expectations that the Federal Reserve (Fed) would hike its benchmark rate in June.
According to investing.com’s Fed rate monitor tool nearly 90% of traders expect the Fed to hike its benchmark rate in June from 0.75-1% to 1-1.25%.
Gold is sensitive to moves higher in U.S. interest rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
Gold remained on track to post a gain for the week, fresh on the heels of achieving its longest monthly winning streak since 2010 in May. It was the yellow metal’s fifth consecutive monthly advance, a feat it last replicated six-and-a-half-years ago.
In other precious metals, silver futures rose 1.33% to $17.511 a troy ounce while platinum futures gained 2.68% to trade at $953.90.
Copper added 0.41% to $2.577, while natural gas traded flat at $3.006.