Gold prices rose to their highest level in over than a month on Friday after a disappointing U.S. employment report underlined the case for the Federal Reserve to continue raising rates at a gradual pace.
Gold for June delivery settled at $1,278.77 on the Comex division of the New York Mercantile Exchange, up 0.93%. It was the highest close since April 25.
The U.S. economy added 138,000 jobs last month the Labor Department reported, falling far short of economists’ expectations for 185,000 new jobs.
Figures for March and April were also revised to show that 66,000 fewer jobs were created than expected, indicating that the labor market may be losing momentum.
The unemployment rate ticked down to a 16-year low of 4.3%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.57% to 96.61 late Friday. It was the lowest close since the U.S. presidential election on November 8, which sent the index soaring.
Gold and the dollar typically move in opposite directions, which means if the dollar goes down, gold futures, which are denominated in the U.S. currency, will rise.
Most analysts still believe the disappointing data will not stop the Federal Reserve from raising interest rates at its meeting later this month.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, June 5
China is to publish its Caixin services PMI.
The UK is to release data on manufacturing activity.
The U.S. is to release data on factory orders and the Institute for Supply Management is to publish its manufacturing index.
Tuesday, June 6
The Reserve Bank of Australia is to announce its benchmark interest rate and publish a rate statement which outlines economic conditions and the factors affecting the monetary policy decision.
Wednesday, June 7
Australia is to publish data on first quarter economic growth.
The UK is to publish industry data on house price inflation.
Canada is to report on building permits.
Thursday, June 8
China and Australia are both to release data on trade.
Switzerland is to publish inflation figures.
In the UK, voting in the general election is to get underway.
The ECB is to announce its latest monetary policy decision and President Mario Draghi is to hold a post-policy meeting press conference.
The U.S. is to report on initial jobless claims.
Friday, June 9
China is to release inflation data.
The UK is to report on manufacturing production and trade.
Canada is to round up the week with its monthly employment report.