Gold prices rose more than a week peak level…read detail inside
Gold prices rose more than a week peak level…read detail inside
Share:

New Delhi: On Monday, Gold prices rose to a more-than-one-week peak as the dollar slipped after data showed U.S. wage growth slowed last month, while investors awaited minutes of the U.S. Federal Reserve's March meeting later this week. Spot gold gained 0.4 percent to $1,296.87 per ounce by 0746 GMT, after touching its highest since March 29 at $1,297.86 earlier in the session. U.S. gold futures were also up 0.4 percent at $1,301 an ounce. "The dollar index is pulling back from multi-week highs and gold prices are riding this tailwind of softer dollar," said Margaret Yang, a market analyst with CMC Markets, Singapore.

The dollar was down 0.1 percent against key rivals as U.S "Though the non-farm payrolls data was better than expected, the manufacturing jobs fell which is a bad signal for the sector and doesn't show a very bright picture of the economic outlook." Treasury yields extended their decline after the U.S. jobs report signalled a slowdown in wage growth even as employment accelerated from a 17-month low in March.

also read BSE gauge Sensex was trading above crucial 39,000-level and Nifty also shows a gain on early trade

Here it is to be noted that the data on Friday also showed job cuts in the manufacturing sector, the first decline in factory payrolls since July 2017. A softer dollar makes gold cheaper for investors holding other currencies. The moderation in wage growth supported the Federal Open Market Committee's (FOMC) decision to abandon any interest rate hikes this year.Stephen Innes said "But ultimately the wild card remains the U.S.-China trade negotiations,", head of trading and market strategy at SPI Asset Management, adding that the equity markets will spike on news of an agreement, denting the near-term appeal of gold.

TO be noted that the U.S. and Chinese negotiators are scheduled to resume discussions this week to try to secure a pact to end the year-long tit-for-tat tariff battle. Asian shares were trading near a seven-month peak briefly touched earlier in the session, limiting bullion's gains. A rally in equity markets has led investors to cut their exposure to gold recently, analysts said.

also read IELTS persons nabbed with fake passport and stamps at IGI airport

Join NewsTrack Whatsapp group
Related News