Home Alternative Investments Gold prices dip as strong U.S. jobs data boosts risk appetite

Gold prices dip as strong U.S. jobs data boosts risk appetite

by Jonathan Adams
Gold

The bullion dropped 2.4% last week, its largest weekly fall since the week ended March 13 and a third consecutive weekly drop

Gold prices slipped on Monday as an unexpected improvement in U.S. employment numbers boosted optimism about economic recovery, boosting risk appetite and denting the appeal of the safe-haven metal.

Spot gold was down 0.2% at $1,682.57 per ounce, as of 1241 GMT. U.S. gold futures were up 0.3% at $1,688.10.

Last week, the bullion dropped 2.4%, its largest weekly fall since the week ended March 13 and a third consecutive weekly drop.

The U.S. economy unexpectedly added jobs in May after suffering record losses in the prior month, data on Friday showed, indicating that the downturn triggered by the coronavirus outbreak was probably over and boosted equity markets.

Focus is now on the U.S. central bank, which will hold a two-day policy meeting ending on Wednesday.

However, showing signs that the effects from the pandemic are still present, China’s exports contracted in May, after a surprising gain in April, while imports fell more-than-expected to a four-year low.

Global deaths from the novel coronavirus topped 400,000 on Sunday, as cases surged in Brazil and India and the global number of cases approached 7 million, according to a Reuters tally.

Risk sentiment was also kept in check by continuing demonstrations for police reforms in the United States.

Speculators cut their bullish positions in COMEX gold, and increased them in silver contracts in the week to June 2, the U.S. Commodity Futures Trading Commission said on Friday.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings, dipped 0.4% to 1,128.11 tonnes on Friday.

Palladium rose 0.4% to $1,961.30 per ounce and silver was up 0.5% to $17.45, while platinum declined 1.7% to $821.78.

Important
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
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