*US employment growth slows sharply in September
* Platinum sees best week since June 25
* Palladium breaks down four weeks in a row (recap, adds comment, updates prices)
Oct 8 (Businesshala) – Gold fell on Friday from a rally of more than 1% due to a miss in US jobs data, as investors settled on the possibility that the Federal Reserve may still have enough bait. This year the stimulus closed economy.
Spot gold was up 0.1% at $1,757.39 an ounce at 11:46 am ET (1546 GMT), having retreated from its highest level since Sept. 22 at $1,781.20.
US gold futures fell 0.1% to $1,757.60.
Spot silver rose 0.6% to $22.71.
US employers added just 194,000 jobs in September, far below expectations. But the upward revision in figures for previous months means the economy has now recovered half of the job losses it faced in December.
Jim Wyckoff, senior analyst at Kitco Metals, said gold rose sharply as earlier data declined, but the report’s internals were “not so bad overall”.
This fueled expectations that the Fed “will continue on its way to ease monetary policy sooner rather than later”, leading to a return to gold, although another bad jobs report next month could change that, Wyckoff said. .
Gold also caught on amid unfavorable conditions from higher US Treasury yields and some support from a slightly weaker dollar.
Standard Chartered analyst Suki Cooper said the gold market now appears to be back on anticipation of a slim announcement sometime this year.
“However, the downside appears to be well supported, given the demand response from the physical market.”
Lower incentives and higher interest rates raise bond yields, which translates into an increased opportunity cost of holding non-yielding bullion.
“For the gold legend to really pick up again, we would need an impulsive rally above $1,950-60, or pre-covid-vaccine-highs and that would require a significant catalyst that just isn’t in the market right now. ,” said a New York-based precious metals trader.
But autocatalysts platinum and palladium remained on gains, rising 4.2% to $1,020.04, and 5.1% to $2,060.26, respectively, possibly buoyed by the positive fine print in the jobs report. (Reporting by Arundhati Sarkar and Arpan Varghese in Bengaluru; Editing by Rashmi Aich and Shailesh Kuber)