Saturday, 02 February 2013 02:57
NEW YORK: Gold rose in line with equities and commodities on Friday, set for a weekly gain, after US nonfarm payrolls data showed modest job growth in January.
Bullion prices climbed after the Labor Department also said US job gains in the prior two months were bigger than initially reported, supporting views the economy's sluggish recovery was on track despite a surprise contraction in output in the final three months of 2012.
Other data showing improved US factory activity and better consumer confidence data also sent the Dow above 14,000 points for the first time since October 2007, lifting gold and industrial commodities, led by crude oil.
The decent payrolls data and signs of a recovering US economy, however, have dampened gold's investment case as a hedge against further monetary stimulus by the Federal Reserve and its safe-haven appeal, an analyst said.
"As an investor, I really do struggle with gold because along with ...