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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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