Investing.com – Gold futures rallied on Friday, re-approaching the all-time high after a report showing the U.S. economy added zero jobs in August boosted the safe haven appeal of the precious metal and fuelled expectations for additional stimulus from the Federal Reserve.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery settled at USD1,883.25 a troy ounce by close of trade on Friday, jumping 2.95% over the week, the biggest weekly gain since August 8.
The October contract rose as much as 3.5% to trade at USD1,884.85 a troy ounce on Friday, the highest since August 23, when prices rose to a record high of USD1,917.90 a troy ounce.
On Friday, the U.S. Department of Labor said non-farm payrolls were unchanged last month, the weakest reading since September 2010. Economists had expected non-farm payrolls to rise by 74,000 in August.
July’s figure was revised down to an increase of 85,000 from a previously reported 117,000. The unemployment rate remained unchanged at 9.1% in August.
The dismal jobs data fuelled expectations that the Federal Reserve will embark on a third round of monetary easing after Fed Chairman Ben Bernanke said last week the central bank remained prepared to implement fresh measures to stimulate the faltering U.S. economy.
Wall Street lender Citigroup said in a report Friday, “Stagnating economic and employment data may force the Fed to seriously consider taking additional action to stimulate the economy.”
Gold prices found further support as concerns grew that the euro zone’s sovereign debt crisis was worsening after negotiations between Greece’s government and the International Monetary Fund were suspended after the debt-laden country failed to meet deficit reduction targets.
The cost of insuring Greek sovereign debt against default surged to a euro-lifetime high following the news, adding to worries over a potential default.
Elsewhere on the Comex, silver for December delivery traded at USD43.31 a troy ounce by close of trade on Friday, climbing 3.75% on the week, while copper for December delivery settled at USD4.101 a pound, easing down 0.12% on the week.
COMEX floor trading will be closed on Monday for the U.S. Labor Day holiday.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery settled at USD1,883.25 a troy ounce by close of trade on Friday, jumping 2.95% over the week, the biggest weekly gain since August 8.
The October contract rose as much as 3.5% to trade at USD1,884.85 a troy ounce on Friday, the highest since August 23, when prices rose to a record high of USD1,917.90 a troy ounce.
On Friday, the U.S. Department of Labor said non-farm payrolls were unchanged last month, the weakest reading since September 2010. Economists had expected non-farm payrolls to rise by 74,000 in August.
July’s figure was revised down to an increase of 85,000 from a previously reported 117,000. The unemployment rate remained unchanged at 9.1% in August.
The dismal jobs data fuelled expectations that the Federal Reserve will embark on a third round of monetary easing after Fed Chairman Ben Bernanke said last week the central bank remained prepared to implement fresh measures to stimulate the faltering U.S. economy.
Wall Street lender Citigroup said in a report Friday, “Stagnating economic and employment data may force the Fed to seriously consider taking additional action to stimulate the economy.”
Gold prices found further support as concerns grew that the euro zone’s sovereign debt crisis was worsening after negotiations between Greece’s government and the International Monetary Fund were suspended after the debt-laden country failed to meet deficit reduction targets.
The cost of insuring Greek sovereign debt against default surged to a euro-lifetime high following the news, adding to worries over a potential default.
Elsewhere on the Comex, silver for December delivery traded at USD43.31 a troy ounce by close of trade on Friday, climbing 3.75% on the week, while copper for December delivery settled at USD4.101 a pound, easing down 0.12% on the week.
COMEX floor trading will be closed on Monday for the U.S. Labor Day holiday.