No justifications for gold's recent rally, investors riding on Fed rate cut hope
Spot gold closed with a solid gain of 1.76% at $2330 Friday as the metal rallied for the third straight week. It hit a fresh record high just above $2330. It posted a whooping gain of nearly 4.50% on the week despite surging yields and a largely steady US Dollar. Part of the gains this week could be attributed to escalating Middle East tensions on possibility of a direct war between Israel and Iran.
The ten-year US yields were up 2.14% Friday and were up around 4.70% on the week. The two-year US yields closed at 4.76%, up by 2.26% Friday and were up around 2.50% on the week. The US Dollar Index failed to capitalise on a stellar job report as healthy risk appetite weighed on it; however, it closed with a gain of 0.06% at 104.29 Friday and was down by roughly 0.20% on the week.
Data roundup
The US non-farm payroll report (March) was encouraging as payrolls rose by 303,000 (forecast 200,000), the most in nearly a year, though driven mostly by part time jobs, and the unemployment rate dropped to 3.80% from 3.90% in February. Job gains in the prior two months were revised upward by a combined 22,000. The job growth was led by sectors like healthcare, construction, leisure, and hospitality. Average hourly earnings m-o-m and y-o-y at 0.30% and 4.1% respectively matched their respective forecasts. The participation rate rose to 62.70% from 62.60%, the first rise since November. The number of weekly hours rose to 34.40 from 34.30. In a noteworthy development, the difference between jobs in the payrolls report and employees
