Gold futures gained for the first time in four days on Friday in the midst of broadly lower dollar after a separate report showed salaries and wages in the US increased in the second quarter to the slowest pace on record, weakening the case for the Federal Reserve to raise interest rates.
On the Comex in New York Gold futures for December delivery rose 0.6 percent to settle at $1,095.10 an ounce, after falling as much as 0.9 percent.
At a time of the month, gold ended down in each session for a 10-day stretch in mid-July – experiencing its longest losing streak in almost two decades.
Bullion has remained closed July with one of his worst memories from the turn of the century, as the downside pressure of a dramatic decline of Chinese stocks, speculation of a hike in interest rates by the Fed and resolution potential Greek debt crisis and mounting Iranian nuclear deal sent the prices coiled. A push to remain above $ 1,200, the level of gold in mid-June, now listed in the rear-view mirror.
The 0.2 percent improvement in pay was the smallest since record-keeping began in 1982, the Labor Department said Friday. The dollar fell after the report, boosting demand for gold as a safe haven asset.
Fed President Janet Yellen and his colleagues are expecting increased wages to boost the economy and inflation closer to its target of 2 percent. Gold tumbled to a five-year low last week on speculation that improving growth in the USA will lead policy makers to raise rates back in September, curbing gold’s appeal as it not pay interest.
In the domestic marketplace as speculators trimmed their positions amid a weak global trend gold for delivery in October fell by Rs 132, or 0.53%, to Rs 24,779 per 10 grams on MCX.
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