3 Minutes to Read (Recasts, adds comments and updates price) * Nonfarm payrolls in the United States increased by 850,000 in June* Palladium is expected to rise for the second week in a row. Reuters, July 2 – On a weaker dollar, gold rose as much as 1% on Friday, closing near $1,800, as investors weighed the potential for a tightening of US Federal Reserve policy following the release of the monthly jobs report. By 9:44 a.m. EDT (1344 GMT), spot gold had risen 0.5 percent to $1,785.89 per ounce, up from $1,794.86, its highest level since June 18. Gold futures in the United States rose 0.8 percent to $1,791.00. Although the unemployment rate jumped to 5.9% from 5.8% the previous month, data revealed that job creation in the United States surged in June, with non-farm payrolls increasing by 850,000 jobs after expanding by 583,000 in May. The data comes as US Federal Reserve officials suggested that the central bank start tapering its asset purchases this year. However, Phillip Streible, chief market strategist at Chicago’s Blue Line Futures, said the data was unlikely to prompt the Fed to ease stimulus or initiate interest rate hikes, and that “a lot of analysts were secretly waiting for a much higher surprise build,” which boosted gold. When interest rates rise, non-yielding gold loses favor with investors because it means a higher opportunity cost of owning metal. “Gold has done an excellent job of establishing a bottom, and we’re seeing a strong technical tailwind behind gold,” Streible said, adding that gold investors were likely anticipating negative economic news in the third quarter. Gold’s attraction to other currency holders increased as the dollar index fell 0.1 percent from a three-month high. The extremely contagious Delta variety was also on investors’ radar, prompting some Asian and European governments to postpone reopening plans. The price of silver increased by 1.3 percent to $26.36 per ounce, while the price of platinum increased by 0.1 percent to $1,084.05. Palladium was up 0.6 percent at $2,779.85, putting it on track for a second weekly gain. (Bengaluru-based reporter Nakul Iyer contributed to this report; Edmund Blair edited it.)/n
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