Investing.com – Gold futures were up for a second day on Monday, hovering close to a five-week high as concerns that the U.S. economic recovery is faltering boosted the safe haven appeal of the precious metal, while a broadly weaker U.S. dollar also supported prices.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,545.75 a troy ounce during late Asian trade, climbing 0.17%.
It earlier rose to USD1,549.15 a troy ounce, the highest price sine June 1. Gold prices were less than 2.2% away from an all-time high of USD1,577.15 an ounce it hit on May 2.
The U.S. Department of Labor said on Friday that nonfarm payrolls rose by 54K in May, the smallest jobs gain in nearly a year and significantly below expectations for an increase of 169K.
The unemployment rate unexpectedly rose to 9.1% from 9.0% in April, the highest level in five months.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.16% to trade at 74.11.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Influential Wall Street bank Goldman Sachs said on Friday that it expected the price of gold to continue to rise in 2011, amid mounting expectations that “some type of stimulus will have to be forthcoming to counter job weakness and other persistent macroeconomic problems.”
"We expect gold prices to continue to climb in 2011 as the resumption of quantitative easing should keep U.S. real interest rates low," said Goldman Sachs in a report.
The Federal Reserve has kept its benchmark interest rate at a historical low of 0% since December 2008 and pledged to buy USD600 billion in Treasuries through the end of June to help boost the economy.
Elsewhere, silver for July delivery jumped 1.45% to trade at USD36.75 a troy ounce during late Asian trade, as investors sought a cheaper alternative to gold.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,545.75 a troy ounce during late Asian trade, climbing 0.17%.
It earlier rose to USD1,549.15 a troy ounce, the highest price sine June 1. Gold prices were less than 2.2% away from an all-time high of USD1,577.15 an ounce it hit on May 2.
The U.S. Department of Labor said on Friday that nonfarm payrolls rose by 54K in May, the smallest jobs gain in nearly a year and significantly below expectations for an increase of 169K.
The unemployment rate unexpectedly rose to 9.1% from 9.0% in April, the highest level in five months.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.16% to trade at 74.11.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Influential Wall Street bank Goldman Sachs said on Friday that it expected the price of gold to continue to rise in 2011, amid mounting expectations that “some type of stimulus will have to be forthcoming to counter job weakness and other persistent macroeconomic problems.”
"We expect gold prices to continue to climb in 2011 as the resumption of quantitative easing should keep U.S. real interest rates low," said Goldman Sachs in a report.
The Federal Reserve has kept its benchmark interest rate at a historical low of 0% since December 2008 and pledged to buy USD600 billion in Treasuries through the end of June to help boost the economy.
Elsewhere, silver for July delivery jumped 1.45% to trade at USD36.75 a troy ounce during late Asian trade, as investors sought a cheaper alternative to gold.