Investing.com - Gold futures traded higher in the early part of Monday’s session, but the gains were not enough to erase last Friday’s plunge by the yellow metal.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery gained 0.45% to USD1,218.45 per troy ounce in Asian trading Monday after 2.4% on Friday to settle the week at USD1,221.95 a troy ounce.
Friday’s loss erased a possible weekly gain for gold, sending bullion to a 1% loss on the week. Gold futures were likely to find support at USD1,180.35 a troy ounce, the low from June 28 and a 34-month low and resistance at USD1,249.75, Friday’s session high.
Traders rushed out of safe-haven assets such as gold after the U.S. Labor Department said the world’s largest economy added 195,000 jobs in June, more than the 165,000 increase forecast by economists. May's figure was revised upwards to 195,000 jobs from 175,000, while April's figure was revised up to 199,000 from 149,000.
The U.S. unemployment rate remained at 7.6%, well above the 6.5% area the Federal Reserve has said is necessary before it well consider raising interest rates.
Even without interest rate increases on the near-term horizon, traders still see Friday’s jobs report as giving the Fed room to begin tapering its USD85 billion-a-month bond-buying program. In fact, speculation has increased that the Fed could begin tapering as soon as September should U.S. economic data remain supportive.
In the week ahead, investors will be looking ahead to Wednesday's minutes of the Federal Reserve's June meeting, for further hints regarding the direction of U.S. monetary policy.
Elsewhere, Comex silver for September delivery rose 0.74% to USD18.875 per ounce while copper for September delivery added 0.23% to USD3.076 per ounce.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery gained 0.45% to USD1,218.45 per troy ounce in Asian trading Monday after 2.4% on Friday to settle the week at USD1,221.95 a troy ounce.
Friday’s loss erased a possible weekly gain for gold, sending bullion to a 1% loss on the week. Gold futures were likely to find support at USD1,180.35 a troy ounce, the low from June 28 and a 34-month low and resistance at USD1,249.75, Friday’s session high.
Traders rushed out of safe-haven assets such as gold after the U.S. Labor Department said the world’s largest economy added 195,000 jobs in June, more than the 165,000 increase forecast by economists. May's figure was revised upwards to 195,000 jobs from 175,000, while April's figure was revised up to 199,000 from 149,000.
The U.S. unemployment rate remained at 7.6%, well above the 6.5% area the Federal Reserve has said is necessary before it well consider raising interest rates.
Even without interest rate increases on the near-term horizon, traders still see Friday’s jobs report as giving the Fed room to begin tapering its USD85 billion-a-month bond-buying program. In fact, speculation has increased that the Fed could begin tapering as soon as September should U.S. economic data remain supportive.
In the week ahead, investors will be looking ahead to Wednesday's minutes of the Federal Reserve's June meeting, for further hints regarding the direction of U.S. monetary policy.
Elsewhere, Comex silver for September delivery rose 0.74% to USD18.875 per ounce while copper for September delivery added 0.23% to USD3.076 per ounce.