Gold Climbs with US Employers Adding Fewer Jobs than Expected

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Gold Climbs with US Employers Adding Fewer Jobs than Expected

Gold climbed after a report that showed US employers had added fewer workers than expected last month, boosting the demand for the metal as a haven.

Companies added 208,000 employees the past month, a figure that trailed the 222,000 median forecast.

On December 1, gold climbed 3.6%, the highest in 14 months with oil rebounding from a low of five years. In November, gold had dropped to a low of four years with the dollar rallying and demand increasing for an inflation hedge.

Bloomberg quoted broker at Newedge Group, Tommy Capalbo as having said, “Gold has got a slight support from the weaker ADP numbers, but I will still be a seller on rallies. We will continue to see higher volatility in gold with oil and interest rate hike uncertainty.”

February delivery gold futures climbed 0.9% to $1,210 per ounce on the Comex. The 60-day volatility of the metal climbed the highest from March.

Ole Hansen, Saxo Bank senior manager was quoted by Reuters as having said, “There is less appetite for selling the metal. We are seeing the dollar rising, stock markets up, US yields stronger but gold is still well supported and that comes back to what happened on Monday, when a lot of stop loss buying was triggered.”

Investors will be encouraged to withdraw more money from gold, which is a non-interest bearing asset, if the rates are increased sooner than expected.

Carsten Menke, Julius Baer analyst said, “The key drivers in the medium to longer term are the recovering US economy and expected rate hikes next year, which should dent investor demand for gold.”

Platinum climbed 1.1% to $1,223.50 per ounce and March delivery silver futures rose 0.2% to $16.47 per ounce. Through yesterday, silver dropped 15% this year and gold declined 0.2%. Palladium climbed 0.3% to $801.22 per ounce.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com