Gold price bounces up from 17-month low

Singapore (Aug 4)  Gold rallied one per cent on Friday, after falling to the lowest in nearly 17 months when weaker-than-expected US jobs data pushed the dollar lower and a move by the Chinese central bank lifted its currency.

Spot gold was up 0.6 per cent at $1,214.79 an ounce by 2.02pm EDT (1802 GMT), after rallying one per cent to $1,220.01. Earlier, it dropped to $1,204, the lowest since March 15, 2017.

US gold futures settled up 0.3 per cent at $1,223.20 an ounce.

"I think the move up is temporary here. It was the miss in the jobs number and tells you that the jobs market may not be on easy street. It may be having a bump in the road right now," said Phillip Streible, senior market strategist at RJO Futures.

The dollar index turned negative after data showed US job growth slowed more than expected in July.

Earlier, the dollar had climbed to a two-week high against a basket of major currencies and scaled a 14-month peak versus the Chinese yuan.

China's offshore yuan also reversed, rising sharply after its central bank acted to curb short selling of the currency.

Spot gold, which was on track to close the week down 0.3 per cent, its seventh weekly decline in the past eight, may fall toward the next support at $1,194, as it has resumed its downtrend from $1,309.30, according to technical analyst Wang Tao.

Reuters