U.S. stocks closed lower Friday, weighed down by poorer-than-expected non-farm payrolls and downbeat oil prices.
Gold has best day in nearly two-months, with futures for August delivery settling up 2.5% at US$1243 an ounce.
Gold gained in Asia on Monday as chances of a rate hike later this month by the Federal Reserve appear to have dimmed on recent data.
Market players will be turning their attention to a highly anticipated speech by Federal Reserve Chair Janet Yellen on Monday for further clues on the timing of the next U.S. rate hike.
The last full week before the Fed’s June 14-15 meeting is relatively light on data, with most of the focus likely to fall on consumer sentiment figures on Friday to gauge the health of the economy.
Market professionals and retail investors are both bullish on gold for next week, according to the latest results of the Kitco News Wall Street vs. Main Street gold survey.
Twenty-one analysts and traders took part in a survey for market professionals. Twelve, or 57%, said they were bullish. Four, or 19%, were bearish, while another five, or 24%, were neutral.
Meanwhile, this week’s Kitco’s online survey received 643 votes. A total of 326 respondents, or 51%, said they were bullish for the week ahead, while 234, or 36%, were bearish. The neutral votes totaled 83, or 13%.
Phil Flynn, senior market analyst with at Price Futures Group, is among those who look for gold to maintain its upward momentum after the U.S. jobs report.
“The jobs numbers were so pathetic that the odds of a June interest-rate increase are off of the table,” Flynn said. He later added, “The Fed will have no choice other than to stand pat.”
Reference: Proactiveinvestors, Kitco, Investing
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