Gold gains as stocks retreat; U.S. jobs data in focus

(Reuters) – Gold prices rose on Friday, as U.S. Treasury yields fell and a pullback in global equities bolstered demand for the safe-haven metal ahead of U.S. non-farm payrolls data, but a strong dollar put bullion on track for a weekly decline.

FILE PHOTO: Gold bars at the Austrian Gold and Silver Separating Plant ‘Oegussa’ in Vienna, Austria, March 18, 2016. REUTERS/Leonhard Foeger/File Photo

Spot gold was up 0.2% at $1,935.10 per ounce by 0651 GMT, off a near one-week low hit on Thursday. Bullion prices have declined 1.5% so far this week.

U.S. gold futures rose 0.2% to $1,941.

“It’s a bit of a flight to safety right now that we are seeing in gold, because the stock markets are lower,” said Edward Meir, an analyst at ED&F Man Capital Markets.

“What also could be helping gold is the sharp slide we are seeing in U.S. yields.”

Asia’s stock

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Gold is flat as positive U.S. jobs data boosts dollar

An employee arranges gold bars for a photograph at the YLG Bullion International headquarters in Bangkok, Thailand.

Dario Pignatelli | Bloomberg | Getty Images

Gold was flat on Friday, reversing course as better-than-expected U.S. employment data bolstered the dollar, putting bullion on course for a weekly decline of more than 2%.

Spot gold erased early and traded flat at $1,930.11 per ounce. U.S. gold futures settled $3.50 lower at $1,934.30.

“Gold’s correlation with the dollar has been elevated, especially over the past couple of weeks and bullion is being weighed down by the bounce in the greenback following the solid report, especially the unemployment rate,” said Tai Wong, head of base and precious metals derivatives trading at BMO.

The dollar index was up 0.5%, putting it on track for its best week since early April and making the metal expensive for holders of other currencies. Data showed nonfarm payrolls increased

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