Gold eased slightly on Friday as the dollar edged up from recent lows, but the metal held near a three-week high and was on track for a second straight weekly rise.
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The dollar index.DXY =USD stood at 93.862, just above Monday’s low of 93.745 and around 1.8 percent below its levels just before the payrolls data.
Precious metals soared overnight as the likliehood of the U.S. Federal Reserve raising interest rates in the coming month, or months, continues to fall.
The euro EURUSD, +0.0263% rose to $1.13995 from $1.1394 late Wednesday. On Monday, Fed Chair Janet Yellen said the U.S. economy was making progress, while remaining silent on the timing of monetary tightening.
“A positive move develops its own momentum”, said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland.
An early Thursday report that showed a small drop in weekly jobless benefits claims was seen doing little to change the market’s mind on interest rates.
The S&P 500 reached a 10-month high and closed up 0.3 per cent or 7 points to 2,119.
“I think the good news for the market is that the sentiment is still far from euphoric”.
Often perceived as an insurance against economic and financial concerns, gold has risen almost 2 percent this week after weaker than expected US payrolls data dented expectations of an imminent rise in USA interest rates. “So if you have data just chug along and no major shocks, you could potentially have the market gap higher”, said Marc Pouey, U.S. Equity and Quantitative Strategist at Bank of America in NY.
It was a similar picture in NY, as the Dow Jones industrial average dropped 19.86 points at 17,985.19, while the broader S&P 500 composite index dipped 3.64 points to 2,115.48.
Sterling was steady at $1.4551 after having gained roughly 0.8 percent overnight as two polls gave a narrow lead to the “Remain” camp.
Oil prices rose as relentless sabotage of oil supplies in Nigeria.
Prices pared gains briefly as supply glut concerns resurfaced after US data showed a surprise build in gasoline inventories. The loonie fell Thursday, down 0.10 of a USA cent at 78.66 cents US. The dollar got a small lift overnight after revised figures on US productivity and labour costs in the first quarter supported the view that labour market slack is being gradually reduced.
U.S. gold fell 0.2 per cent to $1,270.40. Yields on 10-year benchmark Treasury notes TMUBMUSD10Y, -2.31% on Thursday hit their lowest level since February 11.
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On the Comex division of the New York Mercantile Exchange, gold futures for August delivery declined 0.34% to $1,268.25.
