Gold vault higher, set to end five session losing streak – MarketWatch










Gold futures rallied Friday, poised to end a five session losing streak after a weak September jobs report led investors to believe the Federal Reserve may further delay raising interest rates.

The “ugly” report gave dollar-denominated precious metals, including gold, a boost as the greenback












DXY, -0.26%










 turned sharply lower.
























December gold












GCZ5, +2.07%










 gained $25.40, or 2.3%, to trade at $1,139.10 an ounce on Comex, soaring from $1,109.40 just moments before the jobs report. Prices have posted declines in each of the last five trading sessions.

Even with the sizable gains, however, gold is so far on track to snap a two-week winning streak and log a weekly loss of 0.6%.

The jobs report showed the U.S. economy created 142,000 new jobs in September, sharply lower than the 200,000 jobs economists polled by MarketWatch had forecast. The Labor Department’s employment report also showed a cut in the August and July employment data, while the unemployment rate was unchanged at 5.1%.

“The data were as weak and as fragile as [they] can be and…thrashed all the expectations for the U.S. rate hike not only for October, but the odds for December have also gone much lower,” said Naeem Aslam, chief market analyst at AvaTrade.

The weaker-than-expected employment data has led gold investors to believe the Fed’s timing for lifting rates for the first time in nearly a decade has shifted to 2016. Separate data Friday showed that August factory orders fell 1.7%.



















‘If the Fed sets a further dovish tone, we could see the gold price surpassing the $1,200 mark soon.’


Naeem Aslam, AvaTrade







“If the Fed sets a further dovish tone, we could see the gold price surpassing the $1,200 mark soon,” said Aslam. The employment data are a key gauge of U.S. economic health for the central bank.

But gold could still face some headwinds despite the boost from the jobs report, according to Fawad Razaqzada, technical analyst at Forex.com.

“Taking everything into account though, the overall feeling is that in the current economic climate and market environment it is probably still not the right time for gold to shine,” Razaqzada said in a note ahead of the employment report.

The jobs report also delivered a jolt to December silver












SIZ5, +4.99%










which jumped 67.9 cents, or 4.7%, to trade at $15.19 an ounce, after trading 54 cents lower before the employment report. Silver is on track to register a weekly gain of about 0.5%

In other metals, January platinum












PLF6, +0.08%










added $2.60, or 0.3%, to $907.80 an ounce, but was on track for a weekly decline of 4.6%, while December palladium












PAZ5, +2.74%










 added $14.70, or 2.2%, to $694.10 an ounce, pacing a weekly gain of 4%.

December high-grade copper












HGZ5, +0.93%










 lost just over half a cent to $2.299 a pound, eyeing a weekly gain of 0.7%.