Investing.com – Gold prices surged on Thursday about the back of a weaker dollar, following data showing weakness in labor market but gains were capped as expectations grew that your European Central Bank is moving closer to tightening monetary policy.
Gold futures for December delivery about the Comex division within the The big apple Mercantile Exchange rose by $11.10 or 0.83%, to $1,350.99, a troy ounce.
Following the ecu Central Bank’s decision to keep interest rates unchanged, ECB president Mario Draghi declared that ECB policymakers would likely consider tapering monetary policy in October but did expressed concerns in the sharp development of the euro.
Draghi said that the currency’s strength “represents an origin of uncertainty which requires monitoring pertaining to its implications for any medium term outlook for price stability”.
The sharp increase in the euro came amid a slump while in the dollar following data showing initial jobless claims hit a two-year.
Initial jobless claims at that time running from Aug. 27 to Sept. 2 surged by 62,000 to 298,000, reaching the biggest level since spring 2019, the Labor Department said Thursday.
Dollar-denominated commodities such as gold are understanding of moves from the dollar – A dip from the dollar makes gold cheaper for holders of foreign exchange and thus, increases demand.
The slump within the dollar supported an easy based rally in other metals, as silver futures rose 1.14% to $18.11 a troy ounce while platinum futures added 1.13% to $1018.25.
Copper traded at $3.143, down 0.27%, while gas, fell by 0.47% to $2.99.