Gold traded near a three-month high
Gold prices surged on May 10, trading near a three-month peak, as a decline in the U.S. jobs numbers last week cemented anticipations that interest rates will remain low for some time. Notably, it dented the dollar and increased non-yielding metal’s appeal.
Spot gold rose by 0.4% and settled at $1,836.80 per ounce after reaching its highest at $1,842.91 on Friday, its highest since February. Moreover, U.S. gold futures surged 0.4% to trade at $1,838.10.
Ross Norman, an independent analyst, announced that Friday’s nonfarm payrolls figures were surprisingly disappointing. He added that both the U.S. dollar and yields remain on the back foot, supporting the precious metal.
Lower-than-anticipated nonfarm payrolls numbers came as a speed bump on investors hopes over roaring recovery in the world’s largest economy and tampered down bets over U.S. Federal Reserve tightening policy earlier than anticipated.
U.S. nonfarm payrolls data on Friday revealed that the unemployment rate declined unexpectedly in April, pushing the greenback to a more than two-month low. Notably, the weaker dollar made gold less expensive for holders of other currencies.
The U.S. central bank has pledged to keep interest rates low until inflation and employment increase. Notably, lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Among other precious metals, silver increased by 1.1% and settled at $27.74. Meanwhile, palladium gained 1.3% to $2,964.85 per ounce after reaching an all-time high last week on supply shortfall worries. Platinum gained 1.3% and traded at $1,265.51.
Crude prices increased by more than 1%
Meanwhile, crude prices rose by more than 1% after a major cyberattack that forced the shutdown of critical fuel supply pipelines in the United States, highlighting the fragility of oil infrastructure.
Brent crude rose by 76 cents, which equals 1.1%, and touched $$69.04 a barrel, having boosted by 1.5% last week. U.S. West Texas Intermediate futures advanced by 70 cents, or 1.1%, at $65.60 a barrel, after rising more than 2% last week.
