Gold rises more than 1% despite strong US jobs data
Gold prices rose on Wednesday, February 11, following a strong US jobs report. The price of the precious metal in spot trading reached $5,074.29 per ounce, up 1%, after earlier touching $5,118.47 before retreating slightly.
US gold futures for April delivery rose 1.3% to settle at $5,098.50 per ounce, as the jobs report showed accelerated growth in January and the unemployment rate fell to 4.3%, reflecting the strength of the labor market and giving the US Federal Reserve room to keep interest rates unchanged.
An independent metals trader said the strong report "will close the door on a possible interest rate cut in March, which was opened by yesterday's retail sales figures." Tuesday's data showed that US retail sales were unexpectedly unchanged in December, which could put consumer spending and the economy on a slower growth path at the start of the new year.
A Reuters poll revealed that the US Federal Reserve will keep interest rates unchanged until the end of Chairman Jerome Powell's term in May, but will cut them immediately in June, amid warnings that monetary policy under his likely successor, Kevin Warsh, could become too accommodative.
Other Precious Metals
Silver rose 4.6% in spot trading to $84.39 an ounce after falling more than 3% in the previous session. Platinum climbed 2.5% to $2,138.50 an ounce, while palladium gained 0.8% to $1,722.06.
