• Gold prices have steadied after rising to a fresh six-week high as disappointing jobs data dims the prospects for aggressive US interest rate increases, even though it is unlikely to deter a rate rise at June's Federal Reserve policy meeting.
• US interest rates futures were little changed as a private measure of US services industry activity fell in May within analyst forecasts, with prices declining for the first time since February 2016. Federal funds futures implied traders saw a 96 per cent chance the Fed would raise key overnight borrowing costs at its policy meeting next week.
• Spot gold was steady at $US1,279.11 per ounce by 3.17 pm Monday EDT (0517 Tuesday AEST), after climbing 1.1 per cent on Friday. It hit a peak of $US1,283.27 early in the session, its highest level since April 21. While silver hit a high of $US17.64 an ounce, its strongest since April 26.
US gold futures rose 0.2 per cent to settle at $US1,282.70.
• "The weaker-than-expected US employment report, released on 2 June, boosted gold prices, but has not derailed the likelihood of a rate hike at the June FOMC meeting," Standard Chartered analysts said in a note.
US event risk is unlikely to subside before the next FOMC meeting (14 June) given the Comey testimony takes place this week; but across the pond the UK general election and European Central Bank meeting take place on 8 June."
• Early in the session, gold, seen as a safe-haven, was higher after assailants, in Britain's third Islamist attack in as many months, killed at least seven people in the heart of London. British Prime Minister Theresa May resumes campaigning on Monday for the national election due in three days. The vote is expected to be much tighter than previously predicted.
• "(European elections have) been an underlying supportive factor for some time, providing some good safe-haven buying but not enough to spark any panic buying. That's why we think things will be relatively subdued," ANZ analyst Daniel Hynes said.
Reference: Business News
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