Gold price shoots higher on US labor data disappointment

Gold price shoots higher on US labor data disappointment

[Click here for an interactive chart of gold prices]

Still, gold is on course for its biggest monthly loss since June, with precious metals pressured by the prospect of a pullback in stimulus measures by the Federal Reserve.

The latest labor data shows that applications for US state unemployment benefits unexpectedly rose for a third straight week, led by another surge in California. The dollar fell after the report, boosting bullion’s appeal for investors holding foreign currencies.

A worsening labor market could push the US central bank to delay reducing stimulus, which cushioned the economy from the worst effects of the pandemic and sent bullion prices to a record last year.

Gold is also “running into some renewed physical buying, with some investors looking to hedge against the economic uncertainty, rising inflation”

“This is also leading to uncertainty about Fed tapering because they want a strong job market to announce a tapering,” independent consultant Robin Bhar told Reuters, adding that any delay could be positive for gold.

Gold is also “running into some renewed physical buying, with some investors looking to hedge against the economic uncertainty, rising inflation”, Bhar said.

However, Exinity chief market analyst Han Tan warned that heightened prospects for Fed tapering, widely expected to start in November and chances of Treasury yields continuing to gain are all expected to heap more pressure on zero-yielding gold.

Bullion “really depends on the dollar and yields now,” said Daniel Pavilonis, senior market strategist at RJO Futures, in a Bloomberg note.

The precious metal and silver are also helped by “some short covering” after a selloff Wednesday, he added.

(With files from Bloomberg and Reuters)

This content was originally published here.

Rate:

0 out of 5 stars(0 ratings)

Subscribe to Our Newsletter

money for gold logo

Learn About Buying and Selling Gold for the Best Prices

Get the latest news and expert advice on Gold!

We don’t spam! Read our privacy policy for more info.

Leave a Reply

Related

"When I started in sport – martial arts, kickboxing, football for a boys’ team – they’d always be there. It…

Read more

In early 2021, Zenith introduced a new vision of its legendary El Primero chronograph that made a lot of noise, being…

Read more

Share Great Content for Our Resource Section

About

MoneyForGold.com is a resource site created for those looking to sell their personal collection of gold - whether it’s jewelry, coins, bars, antiques, etc., anything made from gold can be sold for quick cash. We encourage visitors to signup and share quality “Money For Gold” resources.

Have a question or comment? Email us at: contact@moneyforgold.com

Navigation
MoneyForGold.com
50% Complete

Learn Where to Sell Your Gold for the Best Prices

Free 3-Minute, Practical Stories Delivered to You Everyday!
Buy, Sell, Invest in Gold Today!