logo
 
LONDON: Gold pared gains on Friday after data showed US job growth rebounded in April and stayed on track for its biggest weekly loss in six months as expectations for a US interest rate hike in June grew and euro zone political risk receded.
The dollar firmed against a basket of major currencies after the US payrolls data, but its reaction was muted, with the euro near six-month highs before the French election on Sunday.
Spot gold was at $1,227.61 an ounce at 1400 GMT, little changed from late on Thursday and still set to end the week down 3.1 percent, its biggest weekly drop since November. US June gold futures were flat at $1,228.40. “The US employment (data) was stronger than expected,” ABN Amro analyst Georgette Boele said. “This only put gold prices slightly under pressure, because the US dollar did not rally.”
The US Treasury yield curve flattened after the report showed jobs growth in April rebounded and the unemployment rate fell to a nearly 10-year low, reinforcing the view that the Federal Reserve is likely to lift interest rates again in June.
Gold hit a six-week low of $1,225.25 on Thursday after the Fed played down any threats to this year’s planned rate increases, supporting forecasts of another move in June. The



metal is highly sensitive to rising US interest rates, which increase the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced.
Concerns over a victory by far-right candidate Marine Le Pen in the French presidential election, which drove gold lower last month, have faded considerably. Sunday’s vote is expected to elect centrist Emmanuel Macron, whom investors favor. “Following six weeks of fund buying, gold was left exposed as geo-risks faded, but the fact that ETPs have seen limited selling appetite could be an indication that this was mostly speculative sellers reducing longs,” said Ole Hansen, the head of commodities research at Saxo Bank.
Holdings of gold exchange-traded products (ETPs) tracked by Reuters have held fairly steady during the recent sell-off, now standing less than 1 percent below April’s near five-month high. Silver was down 0.1 percent at $16.26 after hitting a four-month low of $16.17 on Thursday. The metal has fallen 10 percent in the second quarter. Platinum was up 1.2 percent at $909.90 an ounce, while palladium was 0.5 percent higher at $807.72. The spread between platinum and palladium was close to its narrowest in 15 years, having dipped below $100 an ounce this week.

No Comments For This Post, Be first to write a Comment.
Leave a Comment
Name:
Email:
Comment:
Enter the code shown:


Can't read the image? click here to refresh

Todays Epaper

English Weekly

neerus indian ethnic wear
Latest Urdu News

Do you think Ruturaj Gaikwad would be a good captain for Chennai Super Kings?

Yes
No
Can't Say