Gold climbs nearly 2% as dollar dips amid mixed data
Gold prices rose on Friday as the dollar dipped against most major rivals while markets assess monthly jobs data.
The Labor Data
US unemployment rose to 3.6% in February from 3.4% in the previous reading, which was the lowest since 1969.
The US economy added 311 thousand new jobs in February, beating estimates of a 224 thousand increase, while slowing down from a 504 thousand increase in January.
The Fed
Fed Chair Powell said recently the Fed hasn't won its battle against inflation yet, which remains considerably higher than 2%.
He noted that inflation calmed down in January with some signals of weakening in services except housing, possibly because of the warmer climate.
However, a full review of the last quarter shows that inflationary pressures remain rather higher than expected in previous meetings.
He asserted policymakers haven't taken the March policy decision yet and continue to analyse the data for the best approach.
Otherwise, the dollar index fell 0.7% as of 19:26 GMT to 104.6, with a session-high at 105.3, and a low at 104.04.
Gold spot prices rose 1.8% as of 19:27 GMT, or $33.4 to $1,868 an ounce.
Wall Street declines after mixed jobs data
US stock indices fell on Friday following mixed data on the jobs market.
Mixed Results
US unemployment rose to 3.6% in February from 3.4% in the previous reading, which was the lowest since 1969.
The US economy added 311 thousand new jobs in February, beating estimates of a 224 thousand increase, while slowing down from a 504 thousand increase in January.
The Fed
Fed Chair Powell said recently the Fed hasn't won its battle against inflation yet, which remains considerably higher than 2%.
He noted that inflation calmed down in January with some signals of weakening in services except housing, possibly because of the warmer climate.
However, a full review of the last quarter shows that inflationary pressures remain rather higher than expected in previous meetings.
He asserted policymakers haven't taken the March policy decision yet and continue to analyse the data for the best approach.
On trading, Dow Jones rose 0.2%, or 54 points to 32,308 as of 15:57 GMT, while S&P 500 declined 0.2%, or 5 points to 3,912, as NASDAQ rose 0.4%, or 44 points to 11,294.
Palladium climbs as the dollar loses ground
Palladium prices rose on Friday as the dollar lost ground against most major rivals with markets assessing the the Fed's policies.
Monetary Tightening
Fed Chair Powell also said the Fed hasn't won its battle against inflation yet, which remains considerably higher than 2%.
He noted that inflation calmed down in January with some signals of weakening in services except housing, possibly because of the warmer climate.
However, a full review of the last quarter shows that inflationary pressures remain rather higher than expected in previous meetings.
Policy tightening could send global economies into recession, in turn hurting commodity and minerals demand.
On trading, the dollar index fell 1.1% as of 15:41 GMT to 104.07, with a session-high at 105.3, and a low at 104.06.
Chinese Demand
Markets continue to rely on China for its high demand on commodities and minerals following the easing of Covid 19 restrictions.
Palladium is used in many industries such as electronics and the car industry for exhaust fumes.
Palladium futures due in June rose 1.1% to $1,390 an ounce as of 15:41 GMT.
