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Gold prices gain as weak U.S. jobs numbers quash talk of Fed move

Published 04/05/2013, 01:10 PM
Updated 04/05/2013, 01:11 PM
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Investing.com - Gold prices rose on Friday after U.S. jobs numbers fell far short of expectations, putting to rest recent sentiments that the Federal Reserve may consider tightening policy in the coming months.

Currently loose monetary policies and low interest rates tend to weaken the dollar, which normally trades inversely with gold.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 1.38% at USD1,573.85 a troy ounce in U.S. trading on Friday, up from a session low of USD1,549.15 and down from a high of USD1,574.65 a troy ounce.

Gold futures were likely to test support USD1,549.15 a troy ounce, the earlier low, and resistance at USD1,604.25, Tuesday's high.

The U.S. Bureau of Labor Statistics reported earlier the economy added 88,000 nonfarm payrolls in March, way below expectations for a gain of 200,000 and below the 268,000 jobs added in February.

The private sector added 95,000 jobs last month, after an increase of 254,000 in February, missing expectations for a 209,000 rise.

The report also showed that the U.S. unemployment rate ticked down to 7.6% in March, from 7.7% the previous month, as more Americans left the labor force.

Analysts were expecting the headline unemployment rate to remain unchanged last month.

The news sent the dollar falling and gold rising on expectations for the Federal Reserve to keep monetary stimulus programs in place, including its USD85 billion monthly bond-buying program that weakens the greenback as a side effect.

Elsewhere on the Comex, silver for May delivery was up 1.49% at USD27.165 a troy ounce, while copper for May delivery was down 0.12% and trading at USD3.348 a pound.









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