Publications
Partners
Singapore - Gold found good support above $1 290 an ounce on Monday as surprisingly weak US jobs data diminished fears that the Federal Reserve will raise interest rates soon, and as weaker stocks prompted some safe-haven bids.
Data on Friday showed US jobs growth slowed in July and the unemployment rate unexpectedly rose, pointing to slack in the labour market. Nonfarm payrolls increased 209 000 last month, while economists had expected a 233 000 gain.
The data supports the Fed's view that a sharp drop in the unemployment rate over the last year has masked substantial weakness in the labour market, signalling the need to keep interest rates at rock-bottom levels well into next year.
Spot gold was little changed at $1 294/oz by 06:43 GMT, after gaining nearly 1% on Friday following the weak US data.
"The surprising weakness in the jobs data on Friday lessens speculation that the Fed will increase rates soon as it shows that the labour market recovery is not going to be very smooth," said one trader in Hong Kong.
"Gold could trade at between $1 280 and $1 320 in the near term supported by the dollar weakness and geopolitical tensions."
The US dollar suffered its biggest one-day fall in nearly a month on Friday after the weak data. Global equity markets were pressured due to concerns over geopolitical tensions and Argentina's debt default.
Gold, seen as an alternative investment to riskier assets such as equities, is seeing some safe-haven bids on escalating violence in the Middle East and Ukraine.
Israel said it would unilaterally hold fire in most of the Gaza Strip on Monday but tensions remained high at the apparent Israeli shelling on Sunday of a UN-run shelter that killed 10 people.
Pro-Russian separatists battled on Sunday to keep advancing Ukrainian government forces at bay in heavy fighting on the outskirts of Donetsk, the rebels' main stronghold in eastern Ukraine.
In the physical markets, buying remained subdued in the seasonally quiet summer period, even as many consumers expected prices to drop further.
In top buyer China local premiums to the global benchmark were steady near $3/oz, down sharply from over $20 earlier this year. Premiums in other parts of Asia have also largely remained steady over the past several weeks.
