Gold Rises On US Employment and China Demand

Gold rose to a two-week high in the longest rally since August in New York, as U.S. jobs data missed estimates and Chinese buyers returned from a holiday. Silver futures headed for the longest winning run in almost six months.

Data released Feb. 7 showed U.S. payrolls rose less than projected in January, sending the Bloomberg Dollar Spot Index to a three-week low. The gauge against 10 currencies was little changed today. Janet Yellen, the new Federal Reserve chairman, will give testimony tomorrow after the central bank said Jan. 29 it will trim monthly bond buying by $10 billion.

Gold, which dropped by the most since 1981 last year, rebounded since the start of January as global equities declined and lower bullion prices spurred more physical demand. Volumes for the benchmark contract on the Shanghai Gold Exchange, which opened on Feb. 7 after a weeklong New Year holiday, climbed to the highest since May today.

via Bloomberg

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