Futures rose gold for the first time in three days from Friday, rebound from the lowest level in seven days after the U.S. employment data disappointing that fueled fears that the economic recovery of the country is losing momentum. As well as investors awaited results of the elections in Greece and France early next week.
In the COMEX division of the New York Mercantile Exchange, the futures trading of gold for June delivery was at 642.65, $ 1 an ounce before the market closes on Friday.
Earlier on Friday, prices fell to 626.85, 1, dollars per ounce, its lowest level since April 25, before rising after the issuance of employment data in the United States. Despite Friday’s gains by 0.5%, the price of gold fell by 1.37% in a week.
The futures contracts for gold is likely to find short-term support at 625.55, $ 1 an ounce, the lowest price since April 25 and resistance at 672.15, 1, dollars per ounce the highest price since May 1.
The Labor Department said the U.S. economy added 115,000 jobs last month, far less than expected to increase 170,000, after adding 154,000 jobs in the upwardly revised March to March.
Unemployment rate fell to 8.1% participation rate also fell at work also, with eased the number of people who seek work.
The weak data added uncertainty about the strength of recovery in the United States, which has fueled speculation about the possibility that the Federal Reserve Board implementing a third round of monetary easing measures to stimulate growth.
Market sentiment was also hit by the continuing fears of political instability in the euro area, in the period leading up to elections in Greece, and France at the weekend, amid fears that a change of leadership may hinder attempts to resolve the debt crisis in the region.
Last week, he left the Federal Reserve Chairman Ben Bernanke the door open to the possibility of buying additional assets to support the U.S. economy.
The weakness of the previous rounds of quantitative easing by the Fed on the dollar to a rise in gold prices to the highest level ever over 920.1 USD (ounce) in September.
Data prompted the disappointing investors to avoid risky assets, such as stocks and commodities, to Atzahmoua on the dollar as a safe haven.
The dollar index, which measures the performance of the greenback against a basket of six other major currencies, rose 0.4% on Friday to end the week at 79.60, the highest level since April 23.
The participants in the market that gold has risen along with the dollar.
Gold prices found support as a safe haven, while continuing fears of political instability in the euro area, in the period leading up to elections in Greece, and France at the weekend, amid fears that a change of leadership may hinder attempts to resolve the debt crisis in the region.
In France, Francois Hollande called for, a competitor Account, and leadership. To renegotiate the budget agreement with European leaders, saying he should focus on larger growth.
Meanwhile in Greece, it was not likely to win any of the two major political parties, New Democracy and PASOK socialist majority, referring to the uncertainty about the economic recovery of the country.
Investors often are buying the precious metal as a safe haven against economic uncertainty and political.
Gold came under great selling pressure earlier in the week, market sentiment also fell after a string of weak data from the Eurozone and the United States amid renewed fears about the outlook for global economic growth.
Elsewhere in the COMEX silver T settled for June delivery was at 30.38 dollars per ounce before the market closed on Friday, down 3.18% in a week. Silver prices fell to their lowest level in 15 weeks at 29.78 dollars per ounce on Friday, before the rise after weak jobs data.
At the same time, copper for July delivery fell 3.25% during the week to close at 3.719 dollars per pound, the lowest level since April 26.
Copper prices fell Middle fears that the global economic recovery falters, prompting traders to reduce the growth of this metal.
Copper is the most sensitive to the expectations of economic growth because of its use on a large scale in all industrial fields. This is an industrial metal, a key indicator of the global economy.
This week, investors will be watching closely the results of the elections in Greece and France, while the cast Chairman of the Fed’s Ben Bernanke’s speech in Chicago – the United States on the dollar.
In addition, China will publish a series of data, including reports on retail sales, inflation, and that would allow investors to measure the strength of the second-largest economy in the world.