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Gold Starts Week on Strong Footing at Expense of Dollar

April 6, 2015 at 22:41 by Vladimir Vyun

Futures for gold rallied today with the help of the dollar’s weakness, though they retreated as of now. The dollar started the week poorly as the Friday’s nonfarm payrolls hurt the currency strongly. While the greenback was able to recover later, the precious metal managed to retain its earlier gains.

The lackluster employment report improved prospects for gold in the near future. Even though an interest rate hike looks inevitable, the poor data means that it will be likely postponed, and this is good for gold. Speculations about a late rate lift-off intensified after comments of William Dudley, President of the New York Fed, who said:

The timing of normalization will be data dependent and remains uncertain because the future evolution of the economy cannot be fully anticipated.

June futures for delivery of gold traded 0.31 percent lower at $1,214.80 per troy ounce as of 22:37 GMT on COMEX today after surging to $1,235.50 earlier — the highest level since February 17.

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