Gold holds at two-week high price levels
After rising to two-week high price levels on June 3 due to the weaker dollar, gold is still holding at two-week high price levels on Monday morning. At 7:06 AM EST, the COMEX gold futures for July delivery was trading at $1,243.75 per ounce—a gain of 0.07%. Silver is trading at $16.41 per ounce—a gain of 0.27%.
Gold supported by weak US data
Weaker-than-expected US economic data was released on June 3. It included US non-farm payroll data and the Institute for Supply Management’s non-manufacturing purchasing managers’ index. It raised the demand for safe-haven assets and supported gold prices. Weaker-than-expected data pushed the US dollar to more than three-week low price levels on Friday. According to data released by the Bureau of the Labor Statistics on Friday, the non-farm payrolls only rose 38,000 in the last month. This is way lower than the previous month’s rise of 123,000 and the Market’s expectation of a rise of 164,000.
Market awaits Yellen’s comments
The unexpected drop in non-farm payrolls data drastically decreased the probability of an interest rate hike. The odds of an interest rate hike in June declined from more than 20% to 4% because of the weak non-farm payroll data. The odds for July fell to 32%. The Market is looking forward to the much-awaited speech from Fed Chair Janet Yellen. It’s scheduled at 12:30 PM EST on June 6. Yellen will discuss the Fed’s views on weak US non-farm payroll data and the time of the interest rate hike decision.
Last week, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Royal Gold (RGLD), and Silver Wheaton (SLW) gained 15.40%, 10.8%, 11.9%, and 12.0%. The SPDR Gold Trust ETF (GLD) gained 2.8%.