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Gold set for longest weekly rally in two years as jobs in focus
[SINGAPORE] Gold headed for the longest run of weekly gains in two years, bolstered by the uncertainty surrounding the UK's vote to leave the European Union, with investors turning their attention to a monthly US jobs report.
Bullion for immediate delivery traded at US$1,358.45 an ounce at 8:58am in Singapore, from US$1,360.45 on Thursday, according to Bloomberg generic pricing. The metal jumped to US$1,375.28 on July 6, the highest in more than two years, and is up 1.3 per cent this week. It's heading for a sixth week of gains, the longest streak since July 2014.
Gold has rallied 28 per cent this year as demand for haven assets surged amid market uncertainty after the Brexit vote and as traders reduced bets on the Federal Reserve increasing interest rates this year. Investors are waiting for Friday's US non-farm payrolls report as Fed officials flagged concern over job creation at their last meeting, which was held before the British referendum.
"Prices have taken a bit of a breather ahead of the US jobs report," Australia & New Zealand Banking Group Ltd said in a note Friday.
"The employment report is likely to set the tone for the precious metal in the near term."