Gold rose around 1 percent on Friday after sharply weaker-than-expected U.S. jobs data supported the view that the U.S. Federal Reserve will take a gradual approach to tapering its bond-buying program this year.
U.S. nonfarm payrolls rose just 74,000 in December, the smallest increase in nearly three years and far below the 196,000 forecast by economists. The unemployment rate fell 0.3 percentage point to 6.7 percent.
“This is a bad NFP release and has given gold a boost … but one swallow does not make a summer and one bad NFP print doesn’t change 12 months of gold-bearish macroeconomic news,” Macquarie analyst Matthew Turner said.
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