Softer dollar helps gold reach a one-week high
The metal rises while investors wait for the minutes from the Fed’s March meeting
Spot gold gained about 0.4% to $1,295.81 per ounce in early-morning trading, having hit a session high of $1,296.69 earlier. US gold futures were also up 0.4% at $1,300.10 an ounce. “The dollar index is pulling back from multiweek highs,” said Margaret Yang, a market analyst with CMC Markets, Singapore, adding that a softer dollar is acting as a tailwind for gold. “Though the non-farm payrolls data was better than expected, the manufacturing jobs fell which is a bad signal for the sector and doesn’t show a bright picture for the economic outlook.” The dollar was down 0.1% against key rivals, making bullion cheaper for holders of other currencies. Though employment growth accelerated from a 17-month low in March, data on Friday showed slowdown in wage growth and job cuts in the manufacturing sector, the first decline in factory payrolls since July 2017. The moderation in wage growth supported the Fed’s decision to suspend further interest rate increases in 2019. Lower interest rates ...
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