Gold Edges Higher, Rebounding After Payrolls Shock By

© Reuters.
© Reuters.

By Peter Nurse – Gold prices pushed higher Monday, rebounding a touch after Friday’s sharp losses on the back of the surprise jump in U.S. employment.

At 9:40 AM ET (1340 GMT), on New York’s Comex rose 0.5%, to $1,691.05. 

Gold futures fell nearly 3% Friday, to below $1,700, the sharpest one day drop in nine weeks after the U.S. Labor Department said in its nonfarm payrolls report that 2.5 million Americans re-entered the workforce in May, confounding expectations for a job loss of 8 million.

Despite these gains, gold remains not far off the lowest levels in more than a month as safe-havens remain offered amid broadly upbeat trading sentiment.

Attention will now turn to the U.S. Federal Reserve’s two-day policy meeting that starts on Tuesday for clues on further stimulus measures and the policy rate.

U.S. authorities have already handed out trillions of dollars in loans, grants, and outright aid to businesses and individuals in recent months because of the Covid-19-triggered economic downturn. 

But it may become difficult for the Fed to remain particularly accommodative if, as the latest employment numbers suggest, the economy is already in recovery mode.  

“Gold might not get much more support from the Fed, but geopolitical risks, second wave concerns, and an eventually weaker U.S. dollar should keep the longer-term bullish outlook intact,” Ed Moya, an analyst at New York’s OANDA, said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Read More


Please enter your comment!
Please enter your name here