By Viktor Reklaitis
Gold futures advanced Monday, with analysts continuing to credit a U.S. jobs report that appeared to lower the chances for an interest-rate increase at the Federal Reserve’s meeting later this month.
December gold GCZ6, +0.26% picked up by $3.70, or 0.3%, to $1,330.40 an ounce, while December silver SIZ6, +0.98% jumped by 19 cents, or 1%, to $19.56 an ounce.
On Friday, gold settled 0.7% higher and eked out a small weekly gain, while silver tacked on 2.2% and rose 3.3% for the week. That came after weaker-than-expected figures for August nonfarm payrolls suggested a rate hike is unlikely in September.
The prospect of lower rates for longer can weigh on the dollar and boost the appeal of dollar-priced commodities, as they become cheaper for holders of other currencies. It also can help keep some investors from abandoning precious metals in favor of assets that pay interest.