Bloomberg Published on Mon, Jun 07, 2021

Gold held a gain after US jobs data missed expectations, easing concern that a strong economic rebound would stoke inflation and see a potential dial back in stimulus.

Bullion rose 1.1% Friday as a Labor Department report showed job growth picked up in May, though the 559,000 payrolls gain fell short of economists’ expectations. The jobless rate dropped to 5.8%, while the labor participation rate was little changed.

Investors were also assessing comments by Treasury Secretary Janet Yellen who said Sunday that President Joe Biden should push forward with his US$4 trillion ($5.3 trillion) spending plans even if they trigger inflation that persists into next year, adding a “slightly higher” interest rate environment would be a “plus.”

Gold is holding close to US$1,900 an ounce amid a debate around price pressures, and speculation over whether the Federal Reserve will start talks on the idea of tapering its massive bond-buying program. Policy makers should be “deliberately patient” and wait to see more evidence that the US labor market has made more progress before they consider cutting down their asset-purchases, Cleveland Fed President Loretta Mester said Friday.

Spot gold was little changed at US$1,891.06 an ounce at 8:48 am in Singapore. Prices climbed to $1,916.64 last week, the highest intraday level since Jan. 8. Silver was steady, while platinum rose and palladium fell. The Bloomberg Dollar Spot Index was flat after dropping 0.5% on Friday.

Photo: Bloomberg