Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

Gold Up, Dollar Weakens as U.S. Jobs Report Calms Fear of Early Rate Hike

Published 07/04/2021, 10:40 PM
Updated 07/04/2021, 10:45 PM
© Reuters.

By Doris Yu

Investing.com – Gold was up on Monday morning in Asia, boosted by a weakening dollar. The latest U.S. jobs report also calmed investor fears of an earlier-than-expected interest rate hike.

Gold futures were up 0.24% to $1,787.55 by 10:39 PM ET (2:39 AM GMT). The dollar, which usually moves inversely to gold, edged down on Monday.

On the demand side, central banks including Serbia, Thailand, and Ghana are increasing their gold holdings due to signs of accelerating inflation. “Long term, gold is the most significant guardian and guarantor of protection against inflationary and other forms of financial risks,” the National Bank of Serbia told Bloomberg.

According to the U.S. jobs report, released on Friday, nonfarm payrolls increased by 850,000 in June thanks to rising wages and more incentives. It was higher than the 700,000 figure in forecasts prepared by Investing.com.

Investors are now focusing on further economic data due later in the week for clues on the U.S. Federal Reserve’s next move in its monetary policy. They also await the Reserve Bank of Australia's policy decision, due to be handed down on Tuesday, and the Fed's minutes from its latest meeting, due a day later.

In Asia, Japan’s services purchasing managers index services PMI for June was at a higher-than-expected 48. Meanwhile, data released earlier in the day said that China’s Caixin services PMI in June was 50.3, below May’s 55.1 figure.

Gold in India was sold at a premium in the previous week, the first time it did so in more than two months. Demand increased after the second-largest consumer of gold slightly eased its COVID-19 curbs.

In other precious metals, silver edged down 0.2% and platinum slid 0.3%, while palladium gained 0.3%.

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.