Gold prices rise after US nonfarm payrolls
Gold prices rose on Friday, rebounding from profit-taking during the previous session, as the U.S. dollar weakened after data showed that U.S. job growth slowed sharply in October.
Spot gold added 0.4% to $2,754 per ounce by 1248 GMT. Prices fell by 1.5% on Thursday as some traders took profit after the precious metal hit a record high of $2,790.15.
Bullion rose by 4% in October due to investor anxiety about the U.S. Nov. 5 presidential election. Polls indicate a close race between Donald Trump and Kamala Harris.
U.S. job growth last month was affected by disruptions from hurricanes and strikes by aerospace factory workers. However, the unemployment rate held steady, and economists expected the Federal Reserve to sort through the noise and cut interest rates by 25 basis points next week.
Citi said in a note that gold prices were on track to hit $3,000 per ounce over the next six months amid a deterioration in the U.S. labour market and demand from physically backed gold exchange-traded funds (ETFs).
Meanwhile, high gold prices, which have risen 33% so far this year and are heading for the largest annual growth since 1979, continue to affect physical demand in major Asian regions.
In China, gold consumption fell by 11% in the first nine months of 2024. In India, the share of coins and bars in sales is rising as buyers are unwilling to pay increased making charges for jewellery.
Among other metals, spot silver was up 0.5% at $32.80 per ounce, while platinum gained 0.9% to $996.90 and palladium added 2.9% to $1,137.50.
Source: Reuters
