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Gold Steady after U.S. Jobs Surge; All Eyes on Fed

Published 05/04/2019, 21:26
Updated 05/04/2019, 22:36
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By Barani Krishnan

Investing.com - It was a good U.S. jobs number, yes. But more importantly, will it prompt the Fed to rethink its patient stance on rate hikes?

Gold prices were little changed on Friday after resurgent U.S. nonfarm payrolls data that showed employment leaping from a 17-month low as milder weather boosted activity in sectors like construction.

Spot gold, reflective of trades in bullion, was down 56 cents at $1,291.71 an ounce by 4:18 PM ET (20:18 GMT), after hitting a session low of just under $1,285.

Gold futures for June delivery, traded on the Comex division of the New York Mercantile Exchange, settled the official trading session up $1.30, or 0.1%, at $1,295.60 per ounce.

Stocks on Wall Street added to gains as fears of a sharp growth slowdown in the first quarter were allayed by the March job numbers. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose for a second-straight day.

For investors in gold though, it raised the question of whether it may just be another thing to tilt the Federal Reserve, accused by some of being too dovish of late, the other way. (President Trump said Friday he thinks rates should be cut.)

"196,000 jobs were created in March, which should increase an already strong consumer confidence figure," said Walter Pehowich, executive vice-president at Dillon Gage Metals in Addison, Texas.

Palladium rose after a two-day slide to remain the world's priciest metal.

Spot palladium was up $6.95, or 0.5%, at $1,372.40 an ounce. The silvery-white auto-catalyst metal, used for purifying gasoline emissions, traded some $300 above gold early last month before cutting that premium to about less than $100 lately.

Trades in other Comex metals as of 4:18 PM ET (20:18 GMT):

Palladium futures up $13.70, or 1%, at $1,346 per ounce.

Platinum futures up $1.60, or 0.2%, at $906.10 per ounce.

Silver futuresdown 1 cent, or 0.1%, at $15.07 per ounce.

Copper futures down 2 cents, or 0.7%, at $2.89 per pound.

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