Gold edged higher on Monday after softer-than-expected US nonfarm payroll data eased fears of an imminent tapering of the Federal Reserve’s stimulus measures.
Gold had fallen below $1,300 last week after strong US gross domestic product and factory activity data that reduced its investment-hedge appeal. However, it rebounded after data showed US employers slowed their pace of hiring.
Spot gold was trading 0.2 percent higher at $1,314.26 an ounce by 0656 GMT, while US gold gained about $3 to $1,313.90.“These markets are very much driven in the immediate future by the data that gives us an idea as to when the tapering is going to start taking effect. And gold being very much the most sensitive to that,” said Mark Keenan, cross-commodity research strategist at Societe Generale in Singapore.
Gold, seen as a hedge against inflation, had gained in recent years as the global economy took a hit and central banks acted to boost their economies. Prices touched an all-time high of $1,920.30 in 2011.
Gold had fallen below $1,300 last week after strong US gross domestic product and factory activity data that reduced its investment-hedge appeal. However, it rebounded after data showed US employers slowed their pace of hiring.
Spot gold was trading 0.2 percent higher at $1,314.26 an ounce by 0656 GMT, while US gold gained about $3 to $1,313.90.“These markets are very much driven in the immediate future by the data that gives us an idea as to when the tapering is going to start taking effect. And gold being very much the most sensitive to that,” said Mark Keenan, cross-commodity research strategist at Societe Generale in Singapore.
Gold, seen as a hedge against inflation, had gained in recent years as the global economy took a hit and central banks acted to boost their economies. Prices touched an all-time high of $1,920.30 in 2011.
courtesy of thenews.com.pk
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