Gold soars as US job data fails to flesh up early taper-talk bets, posts weekly gain

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Gold soars as US job data fails to flesh up early taper-talk bets, posts weekly gain

On Friday, the precious safe-haven gold futures’ prices rose nearly 0.8 per cent, hovering closer to a $1,800 per ounce psychological handle and widening their distances further from a two-month high hit earlier in the week, as the American Dollar fell after US Labour Department’s closely monitored nonfarm payroll data had failed to lift up investors’ morale despite reporting the highest number of job gains in more than 10 months, eventually weighing on investors’ prospects of an initiation of early taper-talks.

In point of fact, US Labour Department’s nonfarm payrolls data had reported an increase of 850,000 jobs in June, however, unemployment rate ticked up to 5.9 per cent in June from 5.8 per cent a month earlier. However, although the US Fed officials had recently suggested that the Federal Reserve might begin to taper its monthly bond repurchase program in a near term, several analysts were quoted saying that the employment data had been unlikely to force the US Fed to begin taper talk or ease interest rate in a near term outlook citing many analysts and investors were expecting a bigger lift in the data, bidding well for the safe-haven bullion.

On top of that, concerns over a rise in delta variants in many parts of the United States alongside a lower vaccination rate in some parts of the world’s largest economy, had helped the bullion regain a safe-haven appetite.

Gold rises as US job data fails to impress

Citing statistics, in the day’s commodity market wind-down, spot gold wrapped up the day 0.6 per cent higher to $1,788.12 an ounce after hitting a session high of $1,795.37 an ounce earlier in the day, while US gold futures’ pries gained 0.4 per cent to settle down at $1,783.30 an ounce.

On the week, the safe-haven bullion's prices had gained 0.39 per cent. Among other precious metals, silver gained 1.4 per cent to $26.39 an ounce and platinum futures added 0.5 per cent to $1,087.41, while palladium rose 0.6 per cent to $2,779.85.

Meanwhile, referring to a technical hurdle around $1,790 an ounce for gold futures’ prices, a head of commodity strategist at TD Securities, Bart Melek said, “In the near term, gold is facing technical resistance at around $1,790 and will likely tread water until we see some weaker-than-expected economy data.