Investing.com — ticked up on Friday amid a relatively flat dollar, in spite of solid U.S. employment figures last month which provided further indications that the Federal Reserve could raise short-term interest rates in September for the first time in nearly a decade.
On the Comex division of the New York Mercantile Exchange, gold for December delivery traded in a broad range between $1,082.10 and $1,098.90 an ounce, before settling at $1,093.50, up 3.40 or 0.32% on the session. For the week, the precious metal experienced little fluctuation closing near its opening level on Monday of $1,095.10. Gold is still down more than 9% from mid-June when it peaked above $1,200 an ounce.
Gold likely gained support at $1,079.20, the low from July 31 and was met with resistance at $1,104.90, the high from July 27.
On Friday morning, the U.S. Department of Labor’s Bureau of Labor Statistics said the number of non-farm payrolls in the nation during the month of July increased by 215,000, in line with consensus estimates of a 212,000 gain. The figure received a boost from a 60,000 gain in Trade & Transportation jobs, as well as a 40,000 increase in Professional & Business service positions. The Labor Department also upwardly revised non-farm payrolls for June by 8,000 to 231,000.
In addition, waged ticked up by 0.2 % after remaining flat in June – representing an increase of 2.1% on a year-over-year basis. The unemployment rate remained unchanged at 5.3%, also in line with consensus estimates of 5.3%. Earlier this week, Fed governor Jerome Powell said he would take a data-driven approach to the timing of a September rate hike, placing particular emphasis on the strength of the labor market over the next month.
The U-6 unemployment rate, a broader gauge of the national employment situation, inched down 0.1% to 10.4% on the moth. The reading, which measures the total level of unemployed workers plus those marginally attached to the labor force, as well as those who are no longer looking for a job but have looked for one over the last 12 months, stood at 12.6% last July. By comparison, the U-6 rate peaked above 17% during the height of the financial crisis. It is also a preferred measure of Fed chair Janet Yellen, as she weighs whether the labor market has improved to the point which would warrant an imminent rate hike.
Start Free 7 Day Trial Now: Learn the Real Key to Crypto Trading and Start Printing Money Like a Machine...
Gold, which is not attached to the dividends or interest rates, struggles to compete with high-yield bearing assets in rising rate environments.
The dollar, meanwhile, moved broadly higher following the release of the report, before falling back in U.S. afternoon trading. The , which measures the strength of the greenback versus a basket of six other major currencies, surged to a four-month high at 98.41 before turning negative for the session at 97.67, down 0.21%.
Dollar-denominated commodities such as crude become more expensive for foreign purchasers when the dollar appreciates.
Silver for September delivery gained 0.173 or 1.18% to 14.850 an ounce.
for September delivery fell 0.009 or 0.37% to 2.332 a pound.