Gold futures prices rose on Friday as the dollar softened, amid solid U.S. employment figures last month that could help determine the timing of a Fed’s rate hike in September month for the first time in nearly a decade.
On the Comex, gold for December delivery traded in a broad range between $1,082.10 and $1,098.90 an ounce, while, Spot gold was up 0.3 per cent at $1,091.86 an ounce.
By Friday morning, the Department of Labor, Bureau of Labor Statistics of the United States noted as the number of NFP in the nation during July rose by 215,000, amid consensus estimates of a 212,000 increase. The number was boosted by an increase of 60,000 jobs in trade and transportation, as well as an increase of 40,000 in Professional Services & Business service positions. The Labor Department also revised up the June nonfarm payrolls by 8000-231000.
Furthermore, it fought marked up 0.2% after standing flat in June – an increase of 2.1% on a year over year basis. Unemployment rates were unchanged at 5.3%, also in line with consensus estimates of 5.3%. Early this week, Fed Governor Jerome Powell said he would adopt a data-driven synchronization of a rate hike in September, with special emphasis on the strength of the labor market over the next month approach.
A strong jobs number would fan speculation the US central bank will raise rates next month. Higher interest rates would put non-yield-bearing gold under further pressure, increasing the opportunity cost of holding the metal.
The greenback was down low against a basket of major currencies, while European stocks dropped after German industrial production data disappointed.
Currently, with a gain of 0.15 per cent on MCX gold October futures is trading at Rs 24,824. The spot market price of gold has come down to Rs 25,000, which is the last four-year low.
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