Gold Rises As Fed Tapering Hit By Slow Job Growth

Gold climbed to the highest level in a month on speculation that the Federal Reserve will slow the pace of cuts to stimulus after U.S. payrolls increased less than analysts forecast. Silver, platinum and palladium rose.

Bullion for immediate delivery advanced as much as 0.6 percent to $1,255.45 an ounce, the highest price since Dec. 12, before trading at $1,251.75 by 10:36 a.m. in Singapore. Prices rose 0.9 percent last week. Gold for February delivery increased as much as 0.7 percent to $1,255.30 an ounce on the Comex in New York, also the highest since Dec. 12.

Spot gold climbed for a third week, the longest such rally since August, as U.S. employers added 74,000 jobs in December, the fewest since January 2011 and less than the most pessimistic projection in a Bloomberg survey. The Fed said Dec. 18 it will reduce its monthly bond purchases to $75 billion from $85 billion, citing improvements in the labor market.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza