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Gold Surges on Weaker-Than-Expected Jobs Report, Falling Dollar

September 1, 2017 at 14:02 by Andrew Moran

Gold futures are surging yet again as the trading week comes to an end. The yellow metal is posting further gains on a weaker-than-expected jobs report, falling US dollar, and traders seeking a safe-haven asset in the fallout of Hurricane Harvey. It is poised for both a monthly and weekly gain.

December gold futures rose $8.80, or 0.67%, to $1,331.00 per ounce at 13:39 GMT on Friday. The precious metal advanced 4% in August and is poised for a weekly gain of about 2%.

Silver, the sister commodity to gold, is also rallying to close the trading week. September silver futures soared $0.185, or 1.05%, to $17.76 an ounce. The white metal will record a weekly gain of roughly 2%.

According to the US Department of Labor, the US created 156,000 new jobs last month, which is less than what many economists had expected. The unemployment rate climbed to 4.4% in August, up from a 16-year-low of 4.3%. Also, wages have gone up 2.5% in the last 12 months, remaining flat from July.

Many analysts say that this may give the US central bank pause pertaining to interest rates. A disappointing jobs report could cause the Federal Open Market Committee (FOMC) to refrain from pulling the trigger on a rate hike anytime soon.

The US dollar is supporting gold’s rise as the greenback slipped 0.06%. The US dollar has been tumbling to pre-election lows. A weaker buck is good for commodities like gold and silver because it makes it cheaper for foreign investors to purchase.

Investors continue to pour into precious metals as a safe-haven play. Geopolitical tensions are still increasing amid the risks unfolding in East Asia. Two days after North Korea fired a missile over Japan, South Korean and Japanese jets performed military exercises with two supersonic US B-1B bombers in the proximity of the Korean peninsula on Thursday.

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