Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Gold rallies $20 as investors react to U.S. jobs report

Published 04/06/2015, 03:09 AM
Gold futures jump more than 1% on U.S. rate hike outlook
- - Gold prices rallied sharply on Monday, as investors increased bets that the Federal Reserve will hold off on raising interest rates until later this year following the release of disappointing U.S. employment data.

A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery jumped $17.90, or 1.49%, to trade at $1,218.80 a troy ounce during European morning hours.

There was no settlement in gold futures on Friday as markets were closed for the start of the Easter holiday.

Futures were likely to find support at $1,178.20, the low from March 31, and resistance at $1,223.00, the high from March 2.

The Labor Department reported Friday that the U.S. economy added 126,000 new jobs in March, the smallest increase since December 2013. Economists had forecast jobs growth of 245,000 last month.

The surprisingly weak report added to concerns over the outlook for economic growth after other recent economic data pointed to a slowdown at the start of the year.

A slowing labor market could prompt Fed officials to reconsider a planned increase in interest rates. Last month the Fed indicated that the first rate increase could come as soon as June, but added that continued improvement in labor markets would be a key factor it would consider.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, traded at 96.92, not far from a seven-day trough of 96.55 hit on Friday.

Elsewhere on the Comex, silver futures for May delivery surged 48.7 cents, or 2.92%, to trade at $17.18 a troy ounce, while copper for May delivery rallied 8.6 cents, or 3.16%, to trade at $2.820 a pound.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.