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Gold slips 1pc

LONDON: Gold fell on Monday as stock markets rallied on the back of Friday’s stronger than expected US jobs data and the prospect of more monetary stimulus from central banks, while the dollar rose against a basket of currencies.

Simmering concerns over the prospect of Britain leaving the European Union kept gold underpinned, however, keeping prices within $20 of last week’s more than two-year high.

Spot gold was down 0.7 per cent at $1,357.00 an ounce at 1346 GMT, having touched its highest since March 2014 last week at $1,374.91 an ounce.

It slipped sharply in the immediate wake of Friday’s non-farm payrolls data, which showed US job growth surged in June, but rebounded quickly from lows.

“New highs in US bonds and the stronger than expected jobs report have raised the odds of a rate hike later this year,” Saxo Bank head of commodities research Ole Hansen.

Gold is highly sensitive to US interest rates, increases in which lift the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced. US gold futures for August delivery were up 20 cents an ounce at $1,358.60 on Monday.

Silver was up 0.2pc at $20.31 an ounce. Among other precious metals, platinum was up 0.1pc at $1,097 an ounce, while palladium was up 0.9pc at $620.70.