Gold gains 1.9 pc as investors weigh US data

LONDON: Gold futures gained in New York as investors weighed the outlook for continued economic stimulus in the US after jobs data trailed estimates against continued outflows from exchange-traded products.


Gold jumped 1.9% on April 5 after US payrolls in March were lower than economists’ expectations, bolstering the case for prolonged central-bank stimulus.

Gold holdings in the SPDR Gold Trust, the biggest ETP backed by bullion, fell 0.9 tonne to 1,205.31 tonne as of April 5, the lowest since June 2011. “What is important for gold at this point is that the recent US economic data has eased the pressure that was weighing heavily on the market last week,” Joni Teves, a London based analyst at UBS, said in a report.

“This should feed into lingering concerns about the US economy and the potential for deterioration in data to push out tapering of QE further into the future.” Bullion for June delivery rose 0.2% to $1,578.40 an ounce by 7:31 a.m. on the Comex in New York. Gold for immediate delivery fell 0.1% to $1,578.78 an ounce in London.

Futures trading volumes were 24% lower than the 100-day average for the time of day, according to data compiled by Bloomberg.