PRECIOUS-Gold ekes out gains despite record U.S. jobs growth

PRECIOUS-Gold ekes out gains despite record U.S. jobs growth

Reuters  | Jul 03, 2020 02:00

PRECIOUS-Gold ekes out gains despite record U.S. jobs growth

* U.S. economy created a record 4.8 million jobs in June
* Fed edges toward longer-range plan for monetary policy
* Dollar touches one-week low

(Updates prices)
By Shreyansi Singh
July 2 (Reuters) - Gold reversed course and edged higher on
Thursday as the dollar eased, though the metal traded below an
eight-year peak hit in the last session as prospects for
economic recovery improved after data showed the U.S. economy
created record jobs in June.
Spot gold XAU= rose 0.4% to $1,777.04 per ounce by 1:42
p.m. EDT (1742 GMT), holding close to the near eight-year high
of $1,788.96 hit on Wednesday. U.S. gold futures GCv1 settled
up 0.6% at $1,790 per ounce.
Nonfarm payrolls rose by 4.8 million jobs in June, the Labor
Department's closely watched monthly employment data showed, the
most since the government began keeping records in 1939.

"Usually the dollar should strengthen on these very strong
numbers, but it hasn't, which means people are still concerned
that the economy is not out of the woods yet," said Edward Meir,
analyst at ED&F Man Capital Markets.
The dollar .DXY was little changed, having fallen to a
one-week low against a basket of currencies earlier in the
session. USD/
"You can't judge the economy on just one data point for one
day ... People think the economy is coming back and that the Fed
will not have to stimulate as much," said Michael Matousek, head
trader at U.S. Global Investors.
However, the Fed's minutes released on Wednesday pointed to
the fact that it will "keep rates low until 2022, so therefore
that provides still a bid for gold," he added. Federal Reserve policymakers are looking at reviving a Great
Recession-era promise to keep interest rates low until certain
conditions are met. Non-yielding bullion has risen 17% so far this year,
prompted by stimulus measures and interest rate cuts by central
banks. In other metals, palladium XPD= was flat at $1,905.10 per
ounce, platinum XPT= fell 0.7% to $810.10 per ounce, while
silver XAG= edged up 0.2% to $17.97.

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