Gold gains on soft U.S. jobs report
Published Feb 07, 2014 02:34PM ET
Investing.com - Gold prices rose on Friday on expectations that a disappointing U.S. jobs report will cue the Federal Reserve to taper its monthly bond-buying program on a very gradual basis.
Fed bond purchases tend to weaken the dollar by suppressing long-term interest rates that make stocks more attractive, thus bolstering gold's role as a portfolio hedge.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,266.80 a troy ounce during U.S. trading, up 0.76%, up from a session low of USD1,256.00 and off a high of 1,271.60.
The April contract settled up 0.02% at USD1,257.20 on Thursday.
Futures were likely to find support at USD1,240.60 a troy ounce, Monday's low, and resistance at USD1,274.10, Wednesday's high.
The U.S. Labor Department reported earlier that the economy added 113,000 jobs in January, less than an expected 185,000 increase. December's figure was revised up to a 75,000 rise from a previously estimated 74,000 increase.
The report also showed that 142,000 jobs were added in the U.S. private sector last month, compared to expectations for a 185,000 increase. In December, the number of jobs created in the private sector was revised up to 89,000 from a previously estimated 87,000.
The U.S. unemployment rate ticked down to 6.6% last month from 6.7% in December. Analysts had expected the unemployment rate to remain unchanged in January.
The numbers softened the dollar by stoking expectations that the Federal Reserve will taper its USD65 billion monthly bond-buying program gradually.
Meanwhile, silver for March delivery was up 0.35% and trading at USD19.998 a troy ounce, while copper futures for March delivery were up 0.27% at USD3.238 a pound.
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Written By: Investing.com
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