Investing.com – Gold prices continued to hover around breakeven on Friday after a weaker U.S. jobs report kept a lid on the dollar but did little to dampen the prospect of further Federal Reserve rate hikes.
for June delivery on the Comex division of the New York Mercantile Exchange rose by $1.70 or 0.13%, to $1,314.50 a troy ounce.
The U.S. economy created in April, missing economists’ forecast of 189,000, forcing traders to take some profit on the recent dollar rally, helping gold prices steady and move off session lows of $1,308.50.
That, however, was unlikely to avert a third-weekly loss for gold prices as the prospect of further U.S. rate hikes remained intact, supporting an extended rally in the dollar, limiting upside in the precious metal.
Gold is sensitive to moves higher in both bond yields and the U.S. dollar – A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding gold as it pays no interest.
The return of geopolitical uncertainty, meanwhile, added limited demand for safe-haven gold.
Geopolitical uncertainty emerged as traders awaited U.S. President Donald Trump’s decision on the Iran nuclear deal – due May 12 – amid growing expectations the U.S. will withdraw from the agreement.
U.S.-China trade tensions, meanwhile, remained in the focus after a U.S. financial delegation, including Treasury Secretary Steven Mnuchin, failed to make any big breakthroughs following trade talks with Beijing.
In other precious metal trade, rose 0.32% to $16.50 a troy ounce, while gained 0.60% to $909.00 an ounce.
rose 0.05% to $3.08.
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Source: Investing.com