Gold rose after weak US job data
Gold prices remained flat early in the morning on June 3. The Market was looking forward to the US job data. The data released at 8:30 AM EST. At 8:05 AM EST, the COMEX gold futures contract for the August delivery was trading at $1,214.50 per ounce—a gain of 0.16%. Silver was trading at $16.12 per ounce—a gain of 0.53%. The sudden surge in prices was seen right after the release of weaker-than-expected US non-farm payrolls at 8:30 AM EST. At 9:12 AM EST, COMEX gold was trading at $1,240.55 per ounce—a gain of 2.3%. Silver was trading at $16.39 per ounce—a gain of 2.3%.
Focus shifted to US economic data
The Market’s focus shifted towards US economic releases this week. The releases are expected to help the Market gauge the strength of the US economy. Considering the recent comments from Fed officials, better-than-expected US economic data would increase the chances of an interest rate hike as soon as June. The stronger data would also make the US dollar stronger. This would take the shine out of gold. Gold gained more than 14% since the beginning of 2016.
Unexpected drop in non-farm payrolls
According to data released by the U.S. Bureau of the Labor Statistics at 8:30 AM EST, the non-farm payrolls only rose 38,000 in the last month. This is way lower than the Market’s expectation of a rise of 164,000 and last month’s rise of 123,000. This unexpected drop in employment numbers pulled the dollar lower. It supported gold prices. In addition, the Market is looking forward to the non-manufacturing purchasing managers’ index and employment data scheduled to release today.
At 10:14 AM EST precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Royal Gold (RGLD), and Silver Wheaton (SLW) gained 11.4%, 8.8%, 6.9%, and 7.3%. The SPDR Gold Trust ETF (GLD) gained 2.5%.