Gold price up as dollar slips after weak US jobs data
London (Sept 5) Gold rose on Monday as the dollar slipped on receding expectations of an imminent U.S. interestrate rise after lower than expected jobs numbers from the UnitedStates last week.
Spot gold was up 0.1 percent at $1,326.78 an ounce by1123 GMT. The precious metal hit a one-week high above $1,341 onFriday after data showed U.S. employment growth slowed more thanexpected in August after two straight months of robust gains. U.S. gold futures were up 0.3 percent at $1,331.
"What we're seeing is a reversal of expectations that U.S.interest rates would rise in September," said ICBC Standard Bankanalyst Tom Kendall. "The idea that monetary policy is going tostay super easy is good for gold."
The U.S. Federal Reserve's next policy meeting takes placeSept. 20-21 and a decision to keep policy on hold could mean alower U.S. currency, making dollar-denominated gold cheaper andmore attractive for non-U.S. buyers. The U.S. Labour Day holiday is expected to keep volumessubdued on Monday, but new U.S. data releases and any speechesfrom Fed officials will be watched closely for clues to thetiming of any rate moves.
"We have seen the lows for the time being ... and (gold)will stay between $1,310 and $1,350 for the foreseeable future,"Marex Spectron said in a note. "The countdown has already begunto ... the conclusion to the FOMC meeting."
On technicals, analysts see strong support at $1,315, a 23.6percent retracement of the August to September fall, withresistance at $1,330. Analysts and traders are also waiting to see whether physical demand picks up in India over the coming weeks becauseof festivals and the wedding season.
"This has been a disrupted year for gold demand in theIndian market ... it's going to take time for it to approachanything like normal," Kendall said.
Spot silver gained 0.4 percent to $19.48 an ounce,having touched a two-week high of $19.51.
Platinum rose 1.1 percent to $1,070.75, whilepalladium was up 0.3 percent at $677.80.
Source: Reuters
