11.6 C
New York
Monday, December 6, 2021

Gold Has Best Gain in 6 Weeks as Dollar Dips on U.S. Payrolls

Gold Has Best Gain in 6 Weeks as Dollar Dips on U.S. Payrolls© Reuters. Gold has best week in six as dollar dips on disappointing U.S. jobs data.

Investing.com – Gold rose on Friday, advancing in the bullish $1,200 territory and notching its best weekly gain in six after disappointing U.S. nonfarm payrolls for September weighed on the dollar and prompted investors to seek alternative assets, including bullion and higher-yielding bonds.

rose by 134,000 last month, the Labor Department said, vs. expectations for a gain of 185,000. But the unemployment rate fell to 3.7%, the lowest in nearly 50 years.

“The NFP report is about as clear as mud for forex markets,” TD Securities said in a note. “On the whole, we are not convinced that this is a catalyst to trigger additional U.S .dollar gains. If anything, it could be quite the opposite.”

for December delivery settled up 0.33%, or $4, at $1,205.60 a troy ounce on the COMEX metals division of the New York Mercantile Exchange, preliminary exchange data showed. The high of the day was $1,212.30, a peak since Aug. 26.

For the week, December gold jumped 1.2%, its best weekly gain since the week ended Aug. 19, Investing.com data showed.

Gold usually rises when the dollar declines, as it is denominated in the U.S. currency and is sensitive to moves in the greenback. The U.S. , which measures the greenback’s strength against a basket of six major currencies, was down by 0.06% to 95.37 by 2:16 PM ET (1816 GMT) after an intraday low at 95.18.

The yield on the benchmark United States , meanwhile, jumped to 3.227%, a level not seen since 2011, before leveling back to 3.208%.

Bond yields have surged since the Federal Reserve added a quarter point to bring U.S. interest rates to between 2% and 2.5% last week in the third rate hike of the year. The Fed inidcated another increase in December and Friday’s jobs numbers were still supportive to the central bank’s plans, analysts said.

Higher interest rates increase bond yields, making non-interest bearing gold less attractive to investors. They also tend to boost the dollar, making dollar-priced gold more expensive for holders of other currencies.

Despite that, gold has held its own against the dollar and Treasuries since last week, with traders saying it was a sign of the precious metal’s return to its status as safe-haven reserve of the world.

Among other precious metals on COMEX, rose 0.55% to $14.67 per ounce, rose 0.1 % to $825 and increased 1.6% to $1,061.80 an ounce.

In base metals, lost 0.49% to $2.764 a pound.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

10,927FansLike
12,893FollowersFollow
751FollowersFollow
- Advertisement -

Latest Articles

Popular Articles