Make Kitco Your Homepage

Gold Gains, Bulls Benefit As Traders Sell Rumor, Buy Fact On Jobs Data

Kitco News

Gold prices are trading moderately up and near daily highs in morning trading Friday. This morning's April U.S. employment report showed a rise of 263,000, which was well above the forecast at up 190,000. However, Wednesday's strong ADP jobs gain (up 275,000 versus expectations of up 177,000) had many thinking today's more important Labor Department jobs number would indeed be higher. So gold traders and traders of other markets employed an old trading maxim today: "sell the rumor, buy the fact." After being pressured most of this week, the gold market bears were too exhausted to press the market any farther down. The same goes for the U.S. dollar today. Despite the strong jobs number, the greenback could not benefit as the bulls already pushed the USDX to a two-year high earlier this week. June gold was last up $6.30 at $1,278.20.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.