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Precious Metals

Gold eases ahead of US jobs data; headed for 6th weekly gain

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Gold edged down on Friday as investors turned cautious ahead of U.S. jobs data later in the day, but the precious metal remained on course for a sixth consecutive weekly gain.

Spot gold was trading down 0.3 per cent at $1,356.41 (£1,047.98) an ounce by 0656 GMT. Bullion has risen about 1 per cent so far this week.

U.S. gold fell 0.3 per cent to $1,358.10 (£1,048.89) an ounce.

Brian Lan, managing director at Singapore-based gold dealer GoldSilver Central, said, “We have seen some slight correction in gold prices from yesterday…Prices have come up quite a lot. It was long time since many of them decided to take profits”.

Data published on Thursday ahead of the closely-watched U.S. non-farm payrolls report suggested a rebound in jobs growth after May’s paltry gains.

U.S. private payrolls increased more than expected in June as small businesses ramped up hiring, and fewer Americans applied for unemployment benefits last week.

According to analysts, any weakness in hiring however could be an indication that the U.S. Federal Reserve may not raise interest rates any time soon amid the economic uncertainty following the Brexit vote.

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Paul

The author Paul