Gold gains due to US jobs data failure to boost early central bank tight challenges

As the dollar weakened, investors flocked to the U.S. Gold rose on Friday as the Federal Reserve weighed in on the chances of a tightening, with the U.S. strongest. Showed a slight increase in the unemployment rate after the employment report.

Spot gold rose 0.4% to $ 1,784.21 per ounce, hitting $ 1,794.86, its highest level since June 18. U.S. Gold futures rose 0.4% to $ 1,783.30.

In June, the U.S. Data shows that non-farm wages rose 850,000 more than expected, although the unemployment rate rose to 5.9 percent from 5.8 percent in the previous month.

U.S. Federal officials recently suggested that the central bank should begin its asset purchases.

However, Philip Scribble, chief market strategist at Blue Line Futures in Chicago, said the data were unlikely to trigger data from the central bank to reduce the stimulus or initiate an interest rate hike. He said gold had also found some support as many analysts expected a big reversal to the data.

Benchmark U.S. Treasury yields and the dollar fell after the report, while lower yields floated gold as it reduced its likely cost.

The delta coronavirus variant was also on the radar of investors, prompting some countries in Asia and Europe to backtrack on their reopening plans.

Bart Melek, head of products strategies at DT Securities, said these concerns and lower vaccination rates in some parts of the United States could lead some investors to believe that the central bank will be wary of raising interest rates and supporting gold in the long run.

But over time, “gold will face technical resistance of about $1,790 and will tread water until it sees weaker-than-expected economic data.”

Silver was up 1.4% at $ 26.39 an ounce, platinum was up 0.5% at $ 1,087.41 and palladium was up 0.6% at $ 2,779.85.

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