Gold shines as weak US jobs data dents rate hike hopes, Energy & Commodities - THE BUSINESS TIMES: "OCT 3, 20157:01 AM
[NEW YORK] Gold jumped more than 2 per cent on Friday and silver surged over 5 per cent for its best day this year as weaker-than-expected US jobs data dented expectations the US Federal Reserve will raise interest rates this year, triggering short-covering.
Investors raced to cover bearish short bets and some put on new longs after US Labor Department data showed payrolls outside of farming rose by 142,000 last month, much lower than the 203,000 expected.
The data lifted prices off two-week lows, fueling concerns that a China-led global economic slowdown is sapping US economic strength and reinvigorating the moribund bullion market that had been rangebound for months.
Traders had braced for a long-expected US rate hike, the first in almost a decade, later this year, which could hurt demand for non-interest-paying gold while boosting the dollar. "Today could be a game-changer, because nobody expected this sort of a jobs report," said George Gero, precious metals strategist for RBC Capital Markets in New York."
'via Blog this'
No comments:
Post a Comment