Gold prices edged higher in early trading hours in Asian markets on Monday after US jobs data last week cast doubts over the labour market’s strength, prompting investors to be more sceptical of the Federal Reserve’s rate hike trajectory.
Spot gold was up 0.1 percent at $1,925.49 per ounce, while gold futures were down 0.1 percent to $1,931.00 per ounce, Reuters reported.
The Labor Department’s closely watched employment report on Friday showed the US economy added the smallest jobs in 2-1/2 years in June, while fewer jobs were created in April and May, indicating that higher borrowing costs were starting to dampen businesses’ appetite to continue boosting headcount.
Higher rates also dampen the appeal of gold, which pays no interest.
Analysts said as second-quarter earnings approach, investors are looking at beaten-down sectors which might gain ground regardless of whether the US economy falls into recession this year.
An increasing number of countries are repatriating gold reserves as protection against the sort of sanctions imposed by the West on Russia, according to an Invesco survey of central bank and sovereign wealth funds published on Monday.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.3 percent on Friday.
In other precious metals, spot silver gained 0.1 percent to $23.09, platinum added 0.4 percent to $911.40, and palladium climbed 0.2 percent to $1,246.86 on Monday morning trading hours.
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