Gold Futures Extends Winning Streak To 8th Session
Gold prices moved higher on Friday, extending gains for an eighth successive session, as the dollar tumbled after weak U.S. jobs data raised prospects of an interest rate cut in the near future.
Gold prices were lower ahead of jobs data, but rallied smartly after data showed a much slower than expected job growth in the month of May.
The dollar index dropped to a low of 96.46 and was last seen hovering around 96.55, down by about 0.5% from previous close.
Gold futures for August ended up $3.40, or about 0.3%, at $1,246.10 an ounce, after advancing to a high of $1,352.70 at one stage. Futures dropped to a low of $1,334.30 in early trades.
On Thursday, gold futures for August ended up $9.10, or 0.7%, at $1,342.70 an ounce.
Silver futures for July ended up $0.126, at $15.301 an ounce, while Copper futures for July settled at $2.6275 per pound, down $0.0230 from previous close.
Recently, the Federal Reserve Chairman Jerome Powell pledged to sustain the U.S. economic expansion, saying that the central bank will act “as appropriate” to support the economy.
Before that, St. Louis Federal Reserve President James Bullard commented that a reduction in interest rates “may be warranted soon” due in part to escalating global trade tensions.
Bullard said that the Fed faces an economy that is expected to grow more slowly going forward and warned the slowdown could be sharper than expected due to ongoing global trade regime uncertainty.
Today, data from the Labor Department showed a substantial slowdown in the pace of U.S. job growth in the month of May.
The report said non-farm payroll employment rose by 75,000 jobs in May after soaring by a downwardly revised 224,000 jobs in April.
Economists had expected employment to increase by about 185,000 jobs compared to the jump of 263,000 jobs originally reported for the previous month.
Meanwhile, the unemployment rate came in at 3.6% in May, unchanged from the previous month and in line with economist estimates.
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