Gold heads for weekly gain as weak US jobs data tempers rate hike bets
U.S. gold futures for August delivery gained 1.5% to $4,186.80/oz.
Data on Thursday showed that U.S. nonfarm payrolls rose by 57,000 last month, below the 110,000 expected by economists in a Reuters poll.
Gold's rally was driven by a sharp slowdown in U.S. hiring last month and the immediate price reaction appears warranted for the time being as markets pare bets for a Fed rate hike in September, said Han Tan, chief market analyst at Bybit.
Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold.
The U.S. dollar was on track for its biggest weekly loss since April following the jobs data, making greenback-priced bullion more affordable for holders of other currencies. [USD/]
World Gold Council data on Thursday showed central banks added a net 41 metric tons of gold to reserves in May.
Central banks are still expected to remain a demand pillar for spot prices over the longer term, although some have been selling their holdings recently to defend currencies, said Tan.
In physical markets, gold demand in India eased this week as prices rebounded, while buying interest in China improved slightly. [GOL/AS]
Among other metals, spot silver rose 1.9% to $62.19 per ounce, platinum gained 2.3% to $1,653.30, and palladium climbed 0.8% to $1,278.36.
All three metals were on track for weekly gains.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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