Gold found good support above $1,290 an ounce on Monday as surprisingly weak U.S. jobs data diminished fears that the Federal Reserve will raise interest rates soon, and as weaker stocks prompted some safe-haven bids.
Data on Friday showed U.S. job growth slowed in July and the unemployment rate unexpectedly rose, pointing to slack in the labor market. Non-farm payrolls increased 209,000 last month, while economists had expected a 233,000 gain.
The data supports the Fed’s view that a sharp drop in the unemployment rate over the last year has masked substantial weakness in the labor market, signalling the need to keep interest rates at rock-bottom levels well into next year.
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