Gold Surges on The Back of Weak U.S. NFP That Sends Dollar Lower
Feb, 06th 06:39
Gold prices rose on Monday, extending its rally to a third consecutive day, boosted by a weakening dollar after mixed U.S. jobs data published last Friday muted expectations for near-term interest rate hikes.
U.S. gold futures soared nearly 0.4 percent to trade at $1,224.13 per ounce in the second-half of Asian trading session.
According to the Labor Department, the U.S. economy added 227,000 jobs in January from the prior month, smashing forecasts by economists that expected nonfarm payrolls rose by 175,000 last month.
However, as more Americans joined the workforce, the unemployment rate ticked up to 4.8% from 4.7% in December. Average hourly earnings only added 2.5% in January from a year earlier, slowing from 2.8% in December, which may prompt the Federal Reserve to adopt a more cautious approach on raising interest rates this year.
As weaker dollar tends to decrease the opportunity cost of holding non-yielding bullion, gold edged higher.
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