Economy News

Gold is up ahead of US jobs data heading towards a seventh weekly gain

Gold prices rose on Friday and headed for a seventh weekly gain respectively as investors awaited US jobs data that could affect expectations that the Federal Reserve will take strong monetary easing steps.

By 0530 GMT, spot gold rose 0.2 percent to $ 1417.81 an ounce, up nearly 0.6 percent since the start of the week.
Gold futures fell 0.1 percent to $ 1419.80 an ounce.

The US Non-Farm Payrolls report, due later on Friday, which economists expect to rise by 160,000 jobs in June, is expected to be seen, compared to a 75,000 increase in May.

The US central bank holds its monetary policy meeting on July 30 and 31, and the futures contract takes full account of a 25 basis point cut in interest rates.

Gold has gained more than 12 percent or $ 150 since hitting its lowest level since the start of the year at $ 1265.85 in early May, driven by expectations that major central banks will ease monetary policy and escalate tensions between the United States and Iran.

Low interest rates reduce the opportunity cost of a non-yielding gold campaign and pressure the dollar, making gold cheaper for investors than other currency holders.

The dollar index, which tracks the performance of the greenback versus a basket of six major currencies, remained almost unchanged after trading in the previous days in a tight range at a time when US financial markets were closed for a public holiday.

For other precious metals, silver fell 0.1 percent to $ 15.27 an ounce, while platinum rose 0.1 percent to $ 833.28.
Palladium stabilized at $ 1562.50 an ounce and is heading up for the fifth week in a row. Source