MTECHTIPS:- Gold recovers from lows after nonfarm payrolls fall short
Gold prices rebounded from more than three-month lows on Thursday after data showing that the U.S. economy added fewer jobs than expected last month tempered expectations for higher interest rates. Gold futures for August delivery were last at $1,164.7 a troy ounce, off the day’s lows of $1,158.2. The dollar turned broadly lower after the Labor Department reported that the U.S. economy added 223,000 jobs in June, compared to expectations for jobs growth of 230,000. May’s figure was revised down to 254,000 from 262,000 previously. The unemployment rate ticked down to 5.3% last month, from 5.5% in June. Economists had expected the jobless rate to decline to 5.4%. The Federal Reserve has said that continued strengthening in the labor market is a key factor in deciding when to start hiking interest rates. A separate report showed that the number of Americans filing for initial jobless benefits last week rose by 10,000 to 281,000 from 271,000 in the previous week. Economists had expected jobless claims to tick down to 270,000. The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, slid to 96.2 from around 96.59 ahead of the reports. Dollar weakness usually benefits gold, as it boosts the metal’s appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies. Meanwhile, investors were looking ahead to the outcome a Greek referendum on Sunday which would decide the country’s future in the euro zone. Hopes for a last minute deal between Greece and the euro zone were quashed on Wednesday after Greek Prime Minister Alexis Tsipras urged voters to reject the terms of an international bailout deal.