Gold (XAU/USD) rose towards $4,200 at the end of the week after weaker-than-expected US labor market data boosted demand for safe-haven assets. Chemicals
At 9.20 am, gold was trading at $4,186, up 1.54% since it opened early Friday in Asian trading.
Non-Farm Payroll (NFP) data released by the US Bureau of Labor Statistics (BLS) showed the US economy added just 57,000 jobs in June, well below market expectations of 110,000 jobs.
At the same time, the unemployment rate fell to 4.2% from 4.3% in May. The report also reinforced ADP data released a day earlier, which also showed slower-than-expected private sector job growth.
The weak jobs data raised expectations that the Federal Reserve (Fed) will take a more accommodative approach to interest rates this year.
A lower interest rate environment typically benefits gold because the precious metal does not offer interest returns. Chemistry
Meanwhile, geopolitical tensions continue to support gold prices. According to Reuters, indirect talks between the United States and Iran ended without any progress towards resolving the conflict.
Continued uncertainty in the Middle East is boosting demand for safe-haven assets like gold, helping to maintain the bullish momentum for the precious metal.
