Gold prices surge amid weak jobs report
PUBLISHED
2024-07-08
Content
Gold prices jumped on Friday as the US dollar and US bond yields fell in the wake of the weakest jobs report in several months.
Comex gold futures briefly topped $2,400 an ounce before closing at $2,399.
Despite a jump in the value of the US dollar to nearly 67.50 US cents, the Aussie dollar gold price climbed back over $3,500 an ounce before the day’s share rise on Comex.
The World Gold Council said the Australian price closed at $3,543 an ounce.
Data showed the US economy created 206,000 jobs in June, slightly higher than the 190,000 new jobs estimated by economists.
But the report also contained significant revisions to previous reports.
The estimated job growth for May was revised down to 218,000 new jobs from the initially reported 72,000, while April's job growth was revised down to 108,000 new jobs from the previous 165,000.
That was 111,000 fewer jobs created than initially reported (or more than all of April’s new, lower figure, as one economist observed).
The unemployment rate rose to 4.1%, slightly higher than the forecasted 4.0%.
The greenback slipped to a three-week low against its rivals after the jobs data, making gold less expensive for other currency holders, while the yield on the benchmark US 10-year Treasury note fell to 4.28%, down around 11 points for the week.
The Aussie dollar was just under 67.50 US cents, a near six-month high.
Comex silver jumped sharply on Friday and last week, ending at $31.525 an ounce, up 7% for the week, while Comex copper steadied to end at $4.66 a pound, up 3%.
Author
Name | Glenn Dyer | Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey. |