Gold Rises a Day After Solid US Jobs Data

Posted By: Religare
Subscribe to GoodReturns

Gold futures closed higher in the international market on Monday bouncing back after a solid U.S. jobs report issued late last week contributed to a drop in prices to their lowest level in about four months.

Gold Rises a Day After Solid US Jobs Data

The U.S. nonfarm-payrolls data had brought negative news for gold traders as the number from the outset looked acceptable.

The U.S. Federal Reserve is contemplating its efforts to normalize policy. In a Friday's report, the central bank forecasted a gradual increase in interest rates and the imminent wind down of its balance sheet. The European Central Bank, meanwhile, has been signaling that it is getting ready to wind down its stimulus efforts after years of aggressive bond buying.

The collective shift in sentiment by central bankers has rocked bonds, yanking prices lower and sending global bond yields surging. That's proven to be a negative factor for gold, which doesn't offer a yield.

Read more about: gold
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'