Gold Trades Above 11-Week Low as U.S. Payrolls Strengthen Dollar
(Bloomberg) -- Gold traded above an 11-week low after better-than-estimated U.S. payrolls data added to the case for increasing U.S. borrowing costs, boosting the dollar. Platinum rebounded from a six-year low.
Bullion for immediate delivery was at $1,174.35 an ounce at 10:13 a.m. in Singapore from $1,171.94 on Friday, when the metal dropped after the monthly data to $1,162.88, the lowest level since March 19, according to Bloomberg generic pricing. Prices, which fell 1.6 percent last week, climbed as much as 0.5 percent in intraday trading on Monday.
Gold declined 9.8 percent from the year’s closing high in January on prospects for the first interest rate increase since 2006. Odds that the Federal Reserve will tighten in September rose to 33 percent after the best U.S. jobs report in five months, from 27 percent before the figures on Friday. The rise in payrolls suggested the central bank was making progress toward its goal of maximum employment, according to William C.
Dudley, president of the Fed’s Bank of New York. “This evident strength in the labor market probably isn’t enough to persuade the Fed to hike rates by July, but it definitely makes a rate hike by September probable,” Australia & New Zealand Banking Group Ltd. said in a note.
Employers added 280,000 workers last month, beating the median forecast in a Bloomberg survey, figures from the Labor Department showed. Fed officials meet to discuss policy on June 16-17, with the next gatherings set for July and September.
Bullion for August delivery rose 0.5 percent to $1,173.60 on the Comex in New York. The Bloomberg Dollar Spot Index was little changed after jumping 0.8 percent on Friday. The gauge is 5.5 percent higher this year after rising 11 percent in 2014.
Silver for immediate delivery was at $16.1267 an ounce from $16.1132 on Friday, when the metal capped a 3.8 percent weekly loss, the most since the period to March 6.
Platinum rose as much as 0.6 percent to $1,102.71 an ounce and traded at $1,100.11, after falling on Friday to $1,088.72,the lowest level since 2009. Palladium was little changed at $753.60 an ounce.