Tuesday, 8 April 2014

PRECIOUS METALS TIPS April 08, 2014

DAILY BUZZ
GOLD
  • Gold held onto gains on Monday following its biggest one-day jump in over three weeks as investor worries about an early US interest rate hike eased when the nonfarm payrolls report failed to meet market expectations.
  • Data on Friday showed that US non-farm payrolls increased by 192,000 jobs last month, slightly below economists' estimate of 200,000.
  • Markets feared that a strong jobs report, which followed a recent string of good economic data, could prompt a tightening of US monetary policy after Federal Reserve Chair Janet Yellen indicated last month that interest rates could rise in the first half of 2015.
  • Low interest rates, which cut the opportunity cost of holding non-yielding bullion above other assets, had been an important factor driving bullion higher in recent years. 
  • Spot gold was steady at $1,302.36 an ounce by 0349 GMT, after gaining 1.2 percent on Friday - its  biggest percentage increase since March 12.
  • The metal wasn't too far from a one-week high of $1,306.50 hit in the previous session.
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