Gold trades near 15-week high amid Fed rate hike uncertainty
Investing.com
Published Feb 08, 2016 02:56AM ET
Gold futures trade near 15-week high
Investing.com - Gold futures stayed near a three-month high in Europe trade on Monday, amid growing uncertainty over the Federal Reserve's ability to raise interest rates as much as it would like this year.
Gold for April delivery on the Comex division of the New York Mercantile Exchange ticked up $7.80, or 0.67%, to trade at $1,165.50 a troy ounce by 07:50GMT, or 2:50AM ET.
On Friday, gold rallied to $1,175.00, the most since October 28, before falling back to close at $1,157.70, following the release of a mixed U.S. employment report for January, with the rate of job creation slowing but wage growth accelerating.
The U.S. Department of Labor reported that average hourly earnings rose 0.5% last month and were up 2.5% on a year-over-year basis.
The economy created 151,000 jobs last month, the lowest number since September and less than the 190,000 forecast by economists’.
Despite the slowdown in jobs growth the unemployment rate fell to 4.9%, the lowest level since February 2008.
In the week ahead, investors will be looking to Wednesday’s testimony by Fed Chair Janet Yellen and Friday’s data on U.S. retail sales for further indications on the strength of the world’s largest economy.
Prices of the precious metal are up almost 11% so far this year as retreating oil prices and losses in global equity markets underpinned demand for assets perceived as safer. Gold is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk.
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Written By: Investing.com
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