(Kitco News) – Gold prices have pushed into positive territory following the release of weaker-than-expected U.S. employment data.
Friday, The Bureau of Labor Statistics said 103,000 jobs were created in March. The data was a big miss as economists were expecting to see job gains of 188,000. Along with the disappointment in the headline data, employment numbers for January were revised lower to 176,000 jobs, compared to the previous estimate of 239,000. February numbers were revised up to 326,000 from the previous estimate of 313,000.
“With these revisions, employment gains in January and February combined were 50,000 less than previously reported,” the report said.
At the same time, the unemployment rate held at 4.1%, which was slightly up from expectations. Economists were expecting to see a print of 4.0%.
Gold prices were seeing some profit taking ahead of the report as prices hovered around the unchanged level. In initial reaction, the market has pushed higher with June gold futures last traded at $1,332.50 an ounce, up 0.29% on the day.
Gold prices were seeing some profit taking ahead of the report has prices hovered around the unchanged level. In initial reaction, the market has pushed higher with June gold futures last traded at $1,332.50 an ounce, up 0.29% on the day.
Wages continue to remain relatively tame with average hourly earnings increasing by 8 cents last month or 0.3% to $26.82. The rise was in line with expectations. For the year wages have grown 2.7%.
Andrew Grantham said that while wages had “solid” gains last month, they are not accelerating from the past year.
“With the wage figures no higher than expected, markets are likely to focus more on the headline payrolls print and as such today’s data could be slightly negative for the US$ and positive for fixed income,” he siad.
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