Slowing US job growth pushes gold to gain for the fourth consecutive week | Market talk

Slowing US job growth pushes gold to gain for the fourth consecutive week | Market talk
Slowing US job growth pushes gold to gain for the fourth consecutive week | Market talk

Gold rose about 1% to its highest level in two and a half months on Friday, September 3, as slower-than-expected US job growth in August pushed the dollar lower, casting doubt on the timetable for the Fed to scale back its asset purchases.

Spot gold rose 0.92% to $1,826 an ounce, after hitting its highest level since mid-June at $1833.80, to achieve a fourth consecutive weekly gain.

US gold futures rose 1.02% to $1,830.

U.S. job growth came in much less than expected in August amid a jump in coronavirus infections.

The dollar index fell shortly after the report was released, which boosted gold’s attractiveness to those holding other currencies.

Fed Chairman Jerome Powell said last week that if job growth continues, the Fed may begin to reduce asset purchases this year, but will remain cautious about raising interest rates.

Some investors view gold as a hedge against higher inflation that may follow stimulus measures, while lower interest rates reduce the opportunity cost of holding non-yielding bullion.

Market focus will turn to this month’s FOMC meeting.

Source

Slowing job growth pushes gold gain fourth consecutive week Market talk

 
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