Bullion for immediate delivery made a rebound during Asian trade, Monday as buying interests pinched higher with Chinese investors’ return following China’s week-long national day celebration.
Spot gold closed at $1, 260.70 to $1,261.15 per ounce, a $3.20 jump from last Friday’s close. Trading played between $1,256.50 and $1,264.30 on Monday.
A modest opening was reported for spot gold despite Japan and Hong Kong being on holidays with China expected to open as a buyer after its holidays, according to MKS Group.
"Early buying was evident from both speculators and physical traders, with investors expecting the return of the Chinese - after a week-long break - to see some decent buying," said Alex Thorndike, senior precious metals dealer at the abovementioned firm.
“We expect gold to remain buoyant, looking for support around $1,250 following Friday’s encouraging move back above the level on the less than impressive US jobs data,” the broker said.
Last Friday, the released US jobs report revealed 156,000 Americans to join the labor market in September which is below the 171,000 forecast. However, the reading for the previous month was revised from 151,000 to 167,000.
A 0.2 percent for US average hourly earnings was projected, despite the headline unemployment rate increasing from 4.9 percent to 5 percent.
December hike for Fed is still highly likely since the payrolls report showed enough strength, said National Australia Bank on Monday morning.
The market currently sees a 65-percent chance of a December hike pushing through, reports by the CME Group FedWatch tool.
The US jobs data made the US dollar index respond more softly. The index closed at 96.55 on Monday, 0.05 percent higher than its previous landing, but relatively lower compared to last Friday’s 97.47—highest since July.
In equities, the Shanghai Composite jumped 0.8 percent to 3,028.70 on Monday trade.
For commodities, the Brent crude oil for immediate delivery price slumped 0.5 percent at $51.39 per barrel, and the West Texas Intermediate spot price fell 0.59 percent to $49.25.
Gold for December delivery closed at 273 yuan per gram on the Shanghai Futures Exchange while December silver was flat at 3,966 yuan per kilogram.
"Gold prices are quite appealing after the recent correction. In China, what we see today is that there is some demand to buy gold following its dip," said HuaAn Gold fund manager Richard Xu. HuaAn Gold is China's top gold exchange-traded fund (ETF).
Online media is flooded with finance news here and there. However, Trade12 gives you the freshest update in the market daily. Trade12 provides daily market charts as well. Visit Trade12 now!
Interested in trading binary options. Don’t go anywhere else, try Options12.com.Options12.com brings your money back to you, the difference? Options12 prioritizes each client in maximizing his/her trading potential.