Investing.com - Gold prices spiked to the highest levels of the session on Tuesday, as weaker-than-forecast U.S. jobs data dampened expectations that the Federal Reserve will start to taper its bond-buying program in the coming months.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,331.40 a troy ounce during U.S. morning trade, up 1.2%.
Prices hit a session high of USD1,334.90 a troy ounce, the strongest level since October 1.
The December contract ended 0.09% higher on Monday to settle at USD1,315.80 a troy ounce.
Gold futures were likely to find support at USD1,273.80 a troy ounce, the low from October 17 and resistance at USD1,343.70, the high from September 30.
The U.S. Department of Labor said earlier that non-farm payrolls rose by a seasonally adjusted 148,000 in September, below expectations for an increase of 180,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August, but this was partially due to more people dropping out of the labor force.
The highly-anticipated jobs report was supposed to be released on October 4, but was delayed due to the 16-day government shutdown that ended last week.
The disappointing data fuelled expectations that the Fed will delay tapering its stimulus program until next year amid concerns over the impact of the 16-day U.S. government shutdown on the economic recovery.
Gold prices have largely tracked shifting expectations as to whether the Fed would start tapering its USD85-billion-a-month asset-purchase program by the end of the year.
The central bank is scheduled to meet October 29-30 to review the economy and assess policy.
The U.S. dollar came under heavy selling pressure following the downbeat jobs report, further boosting gold prices.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, declined 0.25%to trade at 79.56, the weakest level since February 4.
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.
Elsewhere on the Comex, silver for December delivery rose 1.35% to trade at USD22.57 a troy ounce, while copper for December delivery climbed 0.95% to trade at USD3.335 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,331.40 a troy ounce during U.S. morning trade, up 1.2%.
Prices hit a session high of USD1,334.90 a troy ounce, the strongest level since October 1.
The December contract ended 0.09% higher on Monday to settle at USD1,315.80 a troy ounce.
Gold futures were likely to find support at USD1,273.80 a troy ounce, the low from October 17 and resistance at USD1,343.70, the high from September 30.
The U.S. Department of Labor said earlier that non-farm payrolls rose by a seasonally adjusted 148,000 in September, below expectations for an increase of 180,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August, but this was partially due to more people dropping out of the labor force.
The highly-anticipated jobs report was supposed to be released on October 4, but was delayed due to the 16-day government shutdown that ended last week.
The disappointing data fuelled expectations that the Fed will delay tapering its stimulus program until next year amid concerns over the impact of the 16-day U.S. government shutdown on the economic recovery.
Gold prices have largely tracked shifting expectations as to whether the Fed would start tapering its USD85-billion-a-month asset-purchase program by the end of the year.
The central bank is scheduled to meet October 29-30 to review the economy and assess policy.
The U.S. dollar came under heavy selling pressure following the downbeat jobs report, further boosting gold prices.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, declined 0.25%to trade at 79.56, the weakest level since February 4.
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.
Elsewhere on the Comex, silver for December delivery rose 1.35% to trade at USD22.57 a troy ounce, while copper for December delivery climbed 0.95% to trade at USD3.335 a pound.