Gold touches nine-and-half month high

London (Sept 2)  Gold touched its nine-and-half month high on Friday after US job growth data slowed more than expected for the month of August. Spot gold was up 0.22% at USD 1,323.97 an ounce after reaching USD 1,328.80, the highest since November 9. It was still set for a weekly gain of 2.3%.
 
 US’ gold futures for December delivery gained 0.62% to settle at 1,330.40, its highest since September 27 when it ended the day at USD 1,330.40, and the fifth positive session in the last six.
 
 The US Labor Department said non-farm payrolls increased by 1,56,000 last month and average hourly earnings rose three cents or 0.1%. Gold is sensitive to interest rates because higher rates raise bond yields, making non-yielding bullion less attractive, and tend to boost the dollar, in which gold is priced. The dollar and bond yields weakened sharply following the jobs data but recouped losses.

HFL