Investing.com – Gold futures extended gains on Monday, jumping to a five-week high as mounting concerns over the U.S. economic outlook boosted the appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,553.15 a troy ounce during U.S. morning trade, gaining 0.65%.
It earlier rose to USD1,554.05 a troy ounce, the highest price sine May 2, when gold prices hit an all-time high of USD1,577.15 an ounce.
On Friday, the U.S. Department of Labor said nonfarm payrolls rose significantly less-than-expected in May, increasing by just 54K as the private sector posted the smallest jobs gain in nearly a year.
The slowdown in job creation pushed the unemployment rate up to a five-month high of 9.1% from 9.0% in April.
Global financial service provider Commerzbank said in a report earlier that, “Weak U.S. economic data last week are strengthening expectations that the Federal Reserve will maintain key interest rates at the current very low level for even longer, which will keep the opportunity costs for precious metals low.”
The Fed has kept its benchmark interest rate at a historical low of 0% since December 2008 and pledged to buy USD600 billion in Treasuries through the end of June to help revive the economy.
Influential Wall Street bank Goldman Sachs said on Friday that it expected the price of gold to continue to rise in 2011, amid mounting expectations that “some type of stimulus will have to be forthcoming to counter job weakness and other persistent macroeconomic problems.”
When the Fed announced the second round of quantitative easing, known as the QE2, in November last year, gold prices scored record highs for four consecutive sessions.
Meanwhile, lingering concerns over Middle East turmoil also supported prices. Yemeni President Ali Abdullah Saleh was recovering from an operation in neighboring Saudi Arabia after leaving the country to receive medical treatment to injuries received in an attack on his compound on Friday.
Elsewhere, silver for July delivery rallied 2.5% to trade at USD37.14 a troy ounce during U.S. morning trade, as investors sought a cheaper alternative to gold.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,553.15 a troy ounce during U.S. morning trade, gaining 0.65%.
It earlier rose to USD1,554.05 a troy ounce, the highest price sine May 2, when gold prices hit an all-time high of USD1,577.15 an ounce.
On Friday, the U.S. Department of Labor said nonfarm payrolls rose significantly less-than-expected in May, increasing by just 54K as the private sector posted the smallest jobs gain in nearly a year.
The slowdown in job creation pushed the unemployment rate up to a five-month high of 9.1% from 9.0% in April.
Global financial service provider Commerzbank said in a report earlier that, “Weak U.S. economic data last week are strengthening expectations that the Federal Reserve will maintain key interest rates at the current very low level for even longer, which will keep the opportunity costs for precious metals low.”
The Fed has kept its benchmark interest rate at a historical low of 0% since December 2008 and pledged to buy USD600 billion in Treasuries through the end of June to help revive the economy.
Influential Wall Street bank Goldman Sachs said on Friday that it expected the price of gold to continue to rise in 2011, amid mounting expectations that “some type of stimulus will have to be forthcoming to counter job weakness and other persistent macroeconomic problems.”
When the Fed announced the second round of quantitative easing, known as the QE2, in November last year, gold prices scored record highs for four consecutive sessions.
Meanwhile, lingering concerns over Middle East turmoil also supported prices. Yemeni President Ali Abdullah Saleh was recovering from an operation in neighboring Saudi Arabia after leaving the country to receive medical treatment to injuries received in an attack on his compound on Friday.
Elsewhere, silver for July delivery rallied 2.5% to trade at USD37.14 a troy ounce during U.S. morning trade, as investors sought a cheaper alternative to gold.