AMSTERDAM/LONDON: Gold rebounded from a more than two-week low on Friday after a rise in US non-farm payrolls fell short of expectations, although bullion was still on course to register its biggest weekly decline since March.
Spot gold jumped 1.2% to $1,892.65 per ounce by 11:39 a.m. EDT (15:39 GMT), having earlier in the day hit its lowest since May 19 at $1,855.59. It was down 0.6% for the week so far.
US gold futures gained 1.2% to $1,896.50.
“We’re seeing a modest rally in the wake of the slight miss on the non-farm payrolls ... more than a few market watchers were looking for a much bigger number and when that didn’t occur the gold market bulls kind of gave a sigh of relief,” said Kitco Metals senior analyst Jim Wyckoff.
“Part of what we’re seeing in terms of the strength in gold are inflation expectations and those are partly based on the stronger economic data, like higher jobs growth, a broader recovery in the US (and) parts of Europe, and China is still doing well,” said Jeffrey Christian, managing partner of CPM Group.
“Gold prices will probably continue to trade between $1,855 and $1,920 an ounce levels,” Christian said.
Gold is often viewed as a hedge against inflation.
Silver gained 1.2% to $27.78 per ounce. Palladium fell 0.2% to $2,834.74 and platinum rose 0.7% to $1,164.88.