Gold posts 2.5% weekly gain aided by jobs data

San Francisco (Jan 9)  Gold prices rebounded on Friday from two days of losses after data showed continued job creation in the U.S., finishing 2.5% stronger on the week.

Gold for February delivery GCG5, +0.98%  rose $7.60, or 0.6%, to settle at $1,216.10 an ounce, while March silver SIH5, +0.34% climbed 3 cents to $16.42.

The December employment report showed a gain of 252,000 jobs in December and sharp upward revisions for both November and October. The jobless rate fell to 5.6%, the lowest level since June 2008.

But a surprise drop in hourly wages will keep a lid on the expectations for a rise in interest rates, which should be supportive for gold prices, said Naeem Aslam, chief market analyst at AvaTrade.

Also read: ‘Amazing’ jobs report, apart from wages, economists say

Gold still needs to break resistance at $1,240 an ounce if the trend higher for gold is to continue, Aslam said in a note. The precious metal is up around 2.4% for the week so far.

Charles Evans, the president of the Chicago Fed, said Friday the December jobs report didn't alter his view that the U.S. central bank should wait until 2016 to raise short-term interest rates. “I just don’t see why we should be in a hurry to move off our current accommodative policy,” Evans said in an interview on CNBC.

Elsewhere in metals trading, palladium for March PAH5, +1.22%  delivery rose $7.05 to $800.15 an ounce, while April platinum PLJ5, +0.70%  gained $7.10 to $1,230.10 an ounce. High-grade copper for March delivery HGH5, -0.42%  fell a penny to $2.75 a pound.

Source: MarketWatch