Metals Caught Between Global Gloom and U.S. Job Gains as Gold Slips
Better than expected employment figures in the US causes gold to take a breather after gaining more than 28% since the beginning of the year.
Bloomberg takes a look at the current competing bullish and bearish forces affecting the outlook for precious metals.
Metal markets are caught between global gloom and renewed U.S. optimism.
A six-week surge by gold, the quintessential haven investment, stalled on Friday as better-than-expected U.S. jobs data blunted global economic concern that has boosted safe-haven demand. Copper, often used as a barometer for the global economy, gained as much as 0.9 percent after the labor report.
Gold has climbed 28 percent this year, with demand for havens surging after the U.K.’s Brexit vote and traders cutting bets on the Federal Reserve increasing interest rates this year. The Fed wants more proof that hiring has resumed a healthy pace and that economic momentum is intact before raising interest rates, minutes released Wednesday of last month’s meeting showed.
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