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Gold climbs to one-month high on softer dollar, U.S. jobs data

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Gold rose to its highest level in a month on Monday as the dollar slipped on concerns over weakness in the U.S. labour market, burnishing the metal’s safe-haven appeal.

FUNDAMENTALS

* Spot gold climbed to $1,226.16 an ounce – its highest since Dec. 12, before settling up 0.2 percent at $1,224.70 by 0035 GMT. The metal gained about 1 percent on Friday, snapping a three-week decline.
* U.S. gold futures rose nearly 1 percent to a session high of $1,226.50, before paring some gains.
* Bullion was well-bid as the dollar fell against a basket of major currencies.
* Data on Friday showed that U.S. job growth increased briskly in December, but wages posted their biggest decline in at least eight years in a sign the tightening labour market has yet to give much of a boost to workers.
* A weak economy and a lower dollar boosts gold’s appeal as a hedge.
* The data also added to speculation the Federal Reserve would be patient in raising rates. Higher rates would dent demand for non-interest-bearing gold.
* In a reflection of investor sentiment, SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.42 percent to 707.82 tonnes on Friday.
* Hedge funds and money managers raised their net long positions in gold and silver futures and options in the week to Jan. 6, U.S. Commodity Futures Trading Commission data showed on Friday.
* Bullion was also getting some support from the physical markets, where top consumer China has been buying steadily to stock up for the upcoming Lunar New Year holiday.

MARKET NEWS

* The U.S. dollar took an early dip on Monday as Asian investors caught up with a benign payrolls report and the subsequent slide in Treasury yields, though turnover was light with Tokyo on holiday.
* Share markets were opening lower following a soft finish on Wall Street.

DATA/EVENTS (GMT)

1500 U.S. Employment Trends Dec


PRICES AT 0035 GMT

Metal Last Change Pct chg


Spot gold 1224.7 2.05 0.17

Spot silver 16.53 0.04 0.24

Spot platinum 1229.5 4.9 0.4

Spot palladium 799.85 -0.25 -0.03

Comex gold 1225.1 9 0.74

Comex silver 16.585 0.166 1.01

Euro 1.1865

DXY 91.753


COMEX gold and silver contracts show the

most active months

Source: Reuters

Zhejiang Yaang Pipe Industry Co., Limited

Article Categories:
Metals · Raw materials

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