Gold News

03/08/07: Gold up on weak jobs growth data

The price of gold increased by more than one per cent today (Friday, August 3rd), on negative news relating to US jobs growth.

Bullion has been hovering between $660 and $680 an ounce for some time and today it rose as high as $671.25, a one-week high, Reuters reports.

Analysts believe the small spike was because of non-farms payroll data that was below expectations, which caused a fall in the value of the dollar.

Gold often moves in the opposite direction to the greenback, as investors rush to the relative safety of bullion when the US economy hits a rocky patch.

"The recent consolidation in gold prices has been supported by positive investor sentiment - gold holdings in streetTRACKS ETF have risen to an all time high," said Barclays Capital analyst Suki Cooper. "However the dollar has still proved to be the key driver of sentiment and prices."

The US jobs data showed that non-farm payrolls had increased by 92,000 in July, far less than the 133,000 that was widely expected.


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