Gold futures turned higher Friday morning, after the U.S. created 559,000 new jobs in May, according to the latest monthly update from the Labor Department, missing Wall Street estimates and suggesting the Federal Reserve may maintain its easymoney policies for longer.
The unemployment rate, meanwhile, slipped in May to a pandemic low of 5.8 from 6.1. Consensus estimates were for a gain last month of up to 671,000 jobs, based on a poll of economists by Dow Jones and The Wall Street Journal. The unemployment rate, meanwhile, was expected to dip to 5.9 from 6.1.
The labormarket results suggest that the economy and the market faces a bumpy recovery from the COVID pandemic, which may give the Federal Reserve pause in its consideration of removing easymoney policies and normalizing benchmark interest rates, which currently stand at a range between 0 and 0.25.
That is an environment in which gold may continue to climb, strategists say.
Fed members have said that jobs are a point of focus in determining whether the economy needs further support in the recovery from COVID.
While the downside miss from forecasts was not big, there were some market watchers that were expecting a big miss to the upside on the nonfarm jobs number, and that likely helped to boost the precious metals markets, wrote Jim Wyckoff, senior analyst at Kitco.com, in a daily note.
The headwinds for bullion produced on Thursday were blamed on the betterthanexpected U.S. privatesector payrolls report for…