Gold Rises on Dip Buying as US Employment Appears Weak Ahead of NFP

Gold prices are higher in early U.S. trading Thursday, on a “buy the dip” bounce following the recent profit-taking selling pressure. Gold bulls are encouraged today as their precious metal is higher even as the U.S. dollar index also trades higher. June Comex gold futures were last up $7.80 an ounce at $1,282.40. July Comex silver was last up $0.249 at $17.545 an ounce.

Global stock markets were mostly higher Thursday, as crude oil prices rebounded smartly from losses seen earlier this week. Japan’s markets remained closed for a public holiday. U.S. stock indexes are pointed toward higher openings when the day session begins in New York.

The key “outside markets” on Thursday find the U.S. dollar index again higher on more short covering and bargain hunting after prices hit an eight-month low on Tuesday. If the greenback can post a weekly high close on Friday that would be an early clue that the dollar index has put in a near-term bottom. The rebound in the dollar index has put some selling pressure into raw commodity markets. Meantime, Nymex crude oil prices are solidly higher in early U.S. trading Thursday and hovering just above $45.00 a barrel. As goes crude oil, so, too, will likely go the raw commodity sector.

via Kitco

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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 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