Gold Gains After U.S. Jobs Data Comes in Well Below Estimates By Bloomberg

© Bloomberg. A worker loads 12,5 kilogram gold ingots onto a trolley ready for distribution at the JSC Krastsvetmet non-ferrous metals plant in Krasnoyarsk, Russia, on Monday, July 12, 2021. Gold headed for its second decline in three sessions as strength in the dollar and equities diminished demand for the metal as an alternative asset. Photographer: Andrey Rudakov/Bloomberg

(Bloomberg) — Gold jumped after a key labor-market report showed the U.S. economy added fewer jobs than forecast, diminishing the possibility the Federal Reserve will taper stimulus soon. 

Nonfarm payrolls data showed the U.S. added 235,000 jobs in August, well below economists’ forecasts and far less than the gains seen last month. The dollar sank after the report, boosting gold.

Bullion has struggled this year amid a global economic rebound from the pandemic, which has raised the prospect of central banks reining in their monetary stimulus. In 2020, gold surged to a record on a wave of investor money into exchange-traded funds, though holdings have since fallen.

The focus will now turn to economic data released ahead of the Fed’s meeting later this month. Any more indications the U.S. economic recovery is stuttering may give the central bank cause to delay tapering its asset purchases. Chair Jerome Powell said last week a reduction in monthly bond purchases this year could begin this year, with the labor market making “clear progress.”

rose 0.9% to $1,825.99 an ounce by 1:35 p.m. in London. Silver also gained.


©2021 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Share Market Today