Gold jumps above $1,150 an ounce© Reuters. Gold jumps above $1,150 an ounce

Gold jumps above $1,150 as U.S. dollar collapses to 3-month low
CommoditiesFeb 04, 2016 08:46AM ET

© Reuters. Gold jumps above $1,150 an ounce© Reuters. Gold jumps above $1,150 an ounce

Investing.com – Gold futures rallied to the highest level since late-October on Thursday, as the U.S. dollar collapsed amid growing skepticism over the Federal Reserve’s ability to raise interest rates as much as it would like this year.

Gold for April delivery on the Comex division of the New York Mercantile Exchange rose to an intraday peak of $1,155.30 a troy ounce, the most since October 29, before trading at $1,153.20 by 13:45GMT, or 8:45AM ET, up $11.90, or 1.04%. A day earlier, gold rallied $14.10, or 1.25%, marking its best day in two weeks.

The dollar index tumbled 0.85% to 96.43, a level not seen since October 23, on speculation the Federal Reserve might opt to not raise interest rates at all this year due to slowing U.S. growth and turmoil in global financial markets.

Market participants no longer expect another rate hike this year, while the Fed, from its forecasts, is anticipating four rate rises in 2016.

Prices of the precious metal are up almost 9% so far this year as retreating oil prices and losses in global equity markets underpinned demand for assets perceived as safer. Gold is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk.

On the data front, the U.S. Department of Labor said Thursday the number of individuals filing for initial jobless benefits rose 8,000 last week to 285,000. Analysts expected jobless claims to rise by 3,000 to 282,000 from the previous week’s total of 277,000.

Market players now looked ahead to Friday’s U.S. nonfarm payrolls report. The consensus forecast is that the data will show jobs growth of 190,000 last month, following an increase of 292,000 in December, while the unemployment rate is forecast to hold steady at 5.0%.

Reuters
Gold jumps above $1,150 as U.S. dollar collapses to 3-month low
February 5, 2016