Gold prices rebound, bounces off 2019 lows

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May 3, 2019 2:03pm NYSE:GLD

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From Myra P. Saefong and William Watts: Gold futures climbed Friday, looking to recoup some of their sharp loss from a day earlier that sent prices to their lowest level of the year, but prices remain on track to register a loss for the week–their fifth in six weeks.

Data Friday revealed that the U.S. created a larger-than-expected 263,000 new jobs in April, which helped the unemployment rate fall to a 49-year low of 3.6%.

In reaction, however, the dollar has edged lower, with the ICE U.S. Dollar IndexDXY, -0.30%  down 0.2%, contributing to a weekly decline so far of nearly 0.4%. Weakness in the buck provides support for dollar-denominated gold.

The dollar’s reaction to the jobs report was “a typical V-shape move: up first then down as investors realized the nonfarm payrolls report was not as solid as the headline jobs growth suggested,” said Fawad Razaqzada, technical analyst at “Similarly, yields initially rose then fell back as bonds rallied.”

This helped to underpin U.S. stocks and gold prices, “on perception that this mixed-bag jobs report hasn’t change the outlook for U.S. interest rates materially,” he said in an email update.

Gold for June delivery GCM9, +0.75%  on Comex tacked on $9.60, or 0.8%, to $1,281.60 an ounce, while July silver SIN9, +2.38%  rose 27.8 cents, or 1.9%, to $14.895 an ounce.The most-active gold contract was on track to fall around 0.6% for the week, while silver is off 1.3% over the same stretch. Gold had posted a gain last week, but fell in each four weeks before that.

The SPDR Gold Shares (GLD) was trading at $120.86 per share on Friday afternoon, up $0.92 (+0.77%). Year-to-date, GLD has declined -2.26%, versus a 10.67% rise in the benchmark S&P 500 index during the same period.

GLD currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #1 of 35 ETFs in the Precious Metals ETFs category.

This article is brought to you courtesy of MarketWatch.

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