Forexpros – Gold prices rose in U.S. trading on Friday after the U.S. government reported that the economy added far more jobs in July than forecast, which sent the precious metal’s traditional hedge, the dollar, falling.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery were up 1.03% and trading at USD1,604.95 a troy ounce, up from a session low of USD1,587.05 and down from a high of USD1,607.45 a troy ounce early during the session.
Gold futures were likely to test support at USD1,587.05 a troy ounce, the earlier low, and resistance at USD1,629.25, the high from July 31.
The U.S. economy added a net 163,000 net nonfarm payrolls in July, far more than market expectations for a gain of 100,000 and well above June’s revised figure of 64,000.
The news sparked a global risk-on trading session in which investors ditched the greenback for higher-yielding currencies and equities.
Gold and the U.S. dollar often trade inversely from one another, and the surge in appetite for risk Friday sent the yellow metal gaining.
Meanwhile, the Institute for Supply Management’s service-sector index outpaced expectations last month as well.
In a report, the Institute for Supply Management said that its non-manufacturing purchasing managers’ index rose to a seasonally adjusted annual rate of 52.6 in July, up from 52.1 in June.
The service sector employs the bulk of the U.S. labor market.
Analysts had expected the index to rise 52.0.
Elsewhere on the Comex, silver for September delivery was up 2.69% and trading at USD27.720 a troy ounce, while copper for September delivery was up 2.21% and trading at USD3.363 a pound.
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