Gold rises over 1% buoyed by dollar slide, weak ADP employment data

Author of the article: Gold prices rose over 1% on Thursday supported by a dip in the dollar and data showing U.S. private payrolls rose less than expected last month. Spot gold rose 1.2% to $1,868.41 per ounce by 1:46 p.m. ET (1746 GMT), having earlier risen to a one-week high. U.S. gold futures also…
Gold rises over 1% buoyed by dollar slide, weak ADP employment data

Author of the article:

Gold prices rose over 1% on Thursday

supported by a dip in the dollar and data showing U.S. private

payrolls rose less than expected last month.

Spot gold rose 1.2% to $1,868.41 per ounce by 1:46

p.m. ET (1746 GMT), having earlier risen to a one-week high.

U.S. gold futures also settled up 1.2%, at $1,871.4.

The dollar index was down 0.7%, slipping off a

one-week high touched on Wednesday.

“(The job data) is really raising the recession concerns

that have been brewing in the market and supporting gold,” said

Ryan McKay, commodity strategist at TD Securities

ADP National Employment Report data showed private payrolls

rose by 128,000 jobs last month versus forecast for an increase

of 300,000 jobs.

While the Fed is trying to dampen demand for labor as it

tries to tame soaring inflation, it needs to do so without

pushing the unemployment rate too high.

Investors will now keep a close eye out on Friday’s nonfarm

payrolls data.

“All the pieces of this morning are pointing towards

continued inflation and possibly the Fed not been able to

address it as aggressively as they hope due to weakening

employment numbers,” RJO Futures senior market strategist Bob

Haberkorn said.

Fed Vice Chair Lael Brainard on Thursday said she backs at

least a couple more half-point interest rate hikes, with more on

tap if price pressures fail to cool.

While bullion is considered a safe haven during times of

political and economic uncertainty, higher interest rates

increase the opportunity cost of holding gold, which bears no

interest.

Spot silver rose 2.1% to $22.26 per ounce.

Platinum gained 2.7% to $1,023.69, rising to $1,030.9

earlier, its highest since last March.

Palladium was up 2.5% to $2,047.73, going as high as

5.5% to $2,107.15, its highest in two weeks.

Talks of progress in the chip market could get manufacturing

back up in the automotive industry, said Philip Streible, chief

market strategist at Blue Line Futures in Chicago.

(Reporting by Seher Dareen and Eileen Soreng in Bengaluru;

editing by Diane Craft and Krishna Chandra Eluri)

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Westport Fuel Systems Reports First Quarter 2022 Financial Results
Read More

Westport Fuel Systems Reports First Quarter 2022 Financial Results

Author of the article: VANCOUVER, British Columbia, May 06, 2022 (GLOBE NEWSWIRE) — Westport Fuel Systems Inc. (“WFS”) (TSX:WPRT / Nasdaq:WPRT) today reported financial results for the first quarter ended March 31, 2022 and provided an update on operations. All figures are in U.S. dollars unless otherwise stated. FIRST QUARTER 2022 HIGHLIGHTS Revenues of $76.5 million,…
Box Office: ‘Dragon Ball Super: Super Hero’ Crushes Idris Elba’s ‘Beast’ With $21 Million Debut
Read More

Box Office: ‘Dragon Ball Super: Super Hero’ Crushes Idris Elba’s ‘Beast’ With $21 Million Debut

Author of the article: LOS ANGELES, Aug 21 (Variety.com) – “Dragon Ball Super: Super Hero” topped the box office in its debut, beating expectations by collecting an impressive $21 million in North American ticket sales. The anime film, playing on 3,007 screens, is backed by the production company Crunchyroll, which specializes in Japanese anime film…
Fed’s Bowman keeping open mind on possible half percentage point rate hike in March
Read More

Fed’s Bowman keeping open mind on possible half percentage point rate hike in March

Author of the article: Federal Reserve Governor Michelle Bowman said on Monday that she will assess incoming economic data over the next three weeks in deciding whether a half percentage point interest rate rise at the central bank’s next meeting in March is needed, a stance that underscores divisions among policymakers on how aggressively to…
Japan February exports rise 19.1% year/year -MOF
Read More

Japan February exports rise 19.1% year/year -MOF

Author of the article: TOKYO — Japan’s exports rose 19.1% in February from a year earlier, Ministry of Finance (MOF) data showed on Wednesday. The rise was roughly in line with the 21.0% increase expected by economists in a Reuters poll, and follows growth of 9.6% in January. February imports gained 34.0% year-on-year, versus the…