Gold Price Zoom After Mixed U.S. Jobs Data

Gold Price Zoom After Mixed U.S. Jobs Data
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Gold Silver Reports ~ Gold zoom to a 3 month high in volatile trade on Friday, as a mixed U.S. jobs report prompted investors to reassess the report for U.S. interest rates this year, putting bullion on track for its strongest weekly performance in more than a year.

*U.S. employment gains slowed more than expected in January as the boost to hiring from unseasonably mild weather faded, but rising wages and an unemployment rate at an eight-year low suggested the labour market recovery remains firm.

“The futures curve is showing that the probability of a March {rate} hike has fallen to around 10 percent, around the lowest levels last seen in October, but there is a greater than 50 percent probability there will be an additional hike this year,” said Suki Cooper, Gold Silver Metals analyst for Standard Chartered Bank in New York.

*”This has buoyed the risk-off sentiment that has boosted goldprices.”

*Spot gold XAU= initially rose after the jobs report but then fell to a session low of $1,144.96 an ounce as some focussed on the rise in average hourly earnings, which may have revived the prospect of rate hikes. By 3:11 p.m. EST (2011 GMT) it rose to a new high at $1,165.50, up 0.8 percent and the highest since Oct. 28.

*The spot market was on track to close the week up 4.2 percent having risen for six straight days.

*U.S. gold futures for April GCJ6 settled up 20 cents at $1,157.70 an ounce.

“The data shows a March <interestrate> increase is not totally out of the question, it’s probably 50-50,” said Robin Bhar, an analyst at Societe Generale. “That’s why gold sold off after the report, as the dollar rose.”

*As a non-interest bearing asset, dollar-denominated gold becomes less attractive if U.S. interest rates rise.

*A shaky globaleconomy has lifted buying interest in gold, making it among the best performing assets since the start of 2016 with a gain of nearly 10 percent.

*Holdings of SPDR Gold Trust {GLD}, the world’s largest gold-backed exchangetraded fund, rose to 22.3 million ounces on Thursday, the highest since late October. {GOL/ETF}

*Precious metals were unable to turn around from earlier weakness, having fallen from multimonth highs.P*Spot silver XAG= was down 0.1 percent at $14.86 an ounce, after touching a three-month high at $14.96. ~ Neal Bhai Reports

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