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Gold rises on disappointing U.S. jobs data
Last Updated(Beijing Time):2012-04-10 05:51

Gold futures on the COMEX division of the New York Mercantile Exchange rose Monday, as the weaker- than-expected U.S. March jobs report sent messages that the U.S. Federal Reserve Bank might take a more active role to stimulate the U.S. economy.

The most active gold contract for June delivery gained 13.8 dollars, or 0.9 percent, to settle at 1,643.9 U.S. dollars per ounce.

Gold was one of the few markets that saw gains Monday, as the U. S. equities markets and crude oil fell sharply with the return of trading after the Good Friday holiday.

Market analysts said the release of weaker than expected U.S. jobs data from the Department of Labor Friday was the main factor influencing the negative outside market atmosphere.

Although the U.S. unemployment rate declined from 8.3 percent to 8.2 percent in March, non-farm employment rose by only 120,000 jobs, significantly below the 200,000 mark or more previously estimated. It was the weakest U.S. jobs data since November 2011.

Seen as a traditional safe haven in times of economic difficulties, gold took strength from renewed doubts of a robust U. S. economic recovery and rose almost one percent in response. Additionally, traders seemed to be of the idea that the U.S. Federal Reserve Bank could resume a more activist role in the event of weaker U.S. employment gains.

Further aiding the positive momentum in the gold market was the resolution of a strike last Friday by Indian jewelers. Indian officials are now stepping back from a proposed sharp increase in gold import duties.

Silver, conversely, saw some pressure Monday due to the negative outside market atmosphere in the U.S. stock market. Silver for May delivery decreased 20.6 cents, or 0.65 percent, to close at 31.524 dollars per ounce. July Platinum rose 10.6 dollars, or 0.66 percent, to settle at 1,618.2 dollars per ounce.

Source:Xinhua 
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