Gold retreats from two-year high as US payrolls spur shares

[SINGAPORE] Gold retreated from its highest level in more than two years as Asian stocks tracked US shares higher following a better-than-expected jobs report.

Bullion for immediate delivery rose as much as 0.7 per cent to US$1,375.34 an ounce, its best mark since March 2014, before trading flat at US$1,367.09 at 9:24 am in Singapore, according to Bloomberg generic pricing. The metal advanced 1.9 per cent last week, capping a sixth week of gains, the longest streak since July 2014.

Gold has rallied 29 per cent in 2016 as it strengthens its status as a haven asset after the Brexit vote created further turmoil in financial markets and lowered expectations for a US interest-rate increase.

Risks to the global economy remain evident after the Group of 20 trade ministers met Sunday and said they expect cross- border investment to fall as much as 15 per cent this year. The International Monetary Fund also cut its 2017 growth forecast for the euro area, citing the UK's June 23 referendum.

Set against that, payrolls in the US climbed the most in eight months in June, exceeding the highest estimate in a Bloomberg survey, according to a government report Friday.

BLOOMBERG