Weak Jobs Report Saves Gold Bulls' Hides
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After facing pressure for most of week, gold rallied on Friday after a government jobs report showed weaker-than-expected gains. In March the U.S. added only 88,000 jobs compared to the consensus of 190,000.
From the perspective of gold traders, the news is bullish given the Fed's reliance on jobs data in determining monetary policy. Less jobs means less chance the Fed will tighten and a greater chance of runway inflation.
Prior to the jobs report, gold traded at 9 month lows below $1550 per ounce, and the trend is clearly to the downside. Today's move probably doesn't reverse the longer term trend, say traders, but it does give bulls and opportunity to retrench, and certainly saves their skin, at least for now.
Gold closed the week at $1577 per ounce. SPDR Gold Shares ETF (NYSE: GLD) traded at 152.2, higher by 1.6 percent. iShares Gold Trust (NYSE: IAU) was higher by a similar amount. iShares Silver Trust ETF (NYSE: SLV) gained 1.5 percent on Friday.
From the perspective of gold traders, the news is bullish given the Fed's reliance on jobs data in determining monetary policy. Less jobs means less chance the Fed will tighten and a greater chance of runway inflation.
Prior to the jobs report, gold traded at 9 month lows below $1550 per ounce, and the trend is clearly to the downside. Today's move probably doesn't reverse the longer term trend, say traders, but it does give bulls and opportunity to retrench, and certainly saves their skin, at least for now.
Gold closed the week at $1577 per ounce. SPDR Gold Shares ETF (NYSE: GLD) traded at 152.2, higher by 1.6 percent. iShares Gold Trust (NYSE: IAU) was higher by a similar amount. iShares Silver Trust ETF (NYSE: SLV) gained 1.5 percent on Friday.
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