Business a.m.

Gold gets bullish nod following U.S employment data

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Gold prices gained at the close of the week’s trading, as a weakened dollar raised its appeal to other currency holders while investors weighed up prospects for a tightening of US Federal Reserve policy after the release of the monthly US jobs report.

Spot gold gained 0.3 per cent to $1,781.77 per ounce; US gold futures gained 0.4 per cent higher at $1,782.90, while August gold settled 0.4 per cent higher at $1,783.30 an ounce, its highest finish since June 23.

According to market participan­ts, prices of the precious metals were strengthen­ed by recent data showing an accelerate­d growth in U.S employment rate in June as non-farm payrolls increased by 850,000 jobs after rising by 583,000 in May. The data also follows suggestion­s from US Federal Reserve officials that the central bank should begin to taper its asset purchases this year.

Phillip Streible, chief market strategist at Blue Line Futures in Chicago, said the data was unlikely to trigger a rush from the Fed to ease stimulus or begin interest rate hikes, adding that many analysts were secretly looking for a much larger surprise build, which supported gold.

Streible further averred that gold has done a healthy job of solidifyin­g a bottom and investors are starting to see a bullish technical tailwind behind the yellow metal. He further noted that gold investors could also likely experience some weaker economic data into the third quarter.

Also on investors’ radar was the highly contagious Delta variant, which prompted some countries in Asia and Europe to reconsider decisions about reopening plans.

The week also ended bullish for other precious metals as silver jumped 1.3 per cent to $26.36 per ounce, platinum rose 0.1 per cent to $1,084.05, while palladium gained 0.6 per cent at $2,779.85 to record a second straight weekly gain.

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