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
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Anglo rejects BHP takeover bid as significantly undervalued
India rice prices at three-month low on shrinking demand
Gold prices set for weekly decline ahead of US inflation data
Pricey coffee is here to stay as hoarding, heat hit Vietnam supply
Oil settles higher as weak US economic growth offset by supply concerns
India's Vedanta misses Q4 profit estimates on lower prices