Gold Inches Higher After Jobs Report

By Amrith Ramkumar and Georgi Kantchev

Gold prices swung between small gains and losses before closing slightly higher Friday after the latest jobs report showed employers added fewer jobs than expected last month while the unemployment rate fell to its lowest level since 2000.

Front-month gold for May delivery closed up 0.2% to $1,312.70 a troy ounce on the Comex division of the New York Mercantile Exchange to cap off a third straight week of losses. Prices have stayed between about $1,305 and $1,360 this year, moving within that range based on swings in the dollar, interest rate worries and safe-haven demand.

A recent rally in the dollar as global growth momentum has shifted back to the U.S. has hurt gold, and analysts said Friday's report did little to change that narrative. Although ongoing sluggish wage growth could ease fears of an uptick in inflation, leading to a more aggressive Federal Reserve in raising interest rates, the dollar stayed stable.

The WSJ Dollar Index, which tracks the U.S. currency against a basket of 16 others, was recently up 0.1%. It hit its highest level of the year earlier this week.

The combination of a stable dollar and higher Treasury yields as rates rise could continue to limit gold's gains, said George Gero, managing director at RBC Capital Markets. Gold typically struggles to compete with Treasurys as borrowing costs rise.

"All of that to me means more of the same, at least today, and maybe through next week," Mr. Gero said. "I think [gold] will be stuck in the continued trading range."

Some analysts think another bout of geopolitical worries amid ongoing trade discussions between the U.S. and China might be needed to push investors back to gold. Even with stocks wobbling, some analysts say money managers are cautious about gold's prospects because of the threat of higher interest rates and relatively stable global economy.

"There are major economic, financial and political issues on the horizon that suggest stronger investment demand and higher prices at some point, but they're not here now," said Jeffrey Christian, managing partner at commodities research and asset management firm CPM Group.

Among base metals, front-month copper for May delivery closed up 0.2% to $3.0655. Worries about a slowing global economy in the face of protectionist trade policies and a lack of supply disruptions continue to hurt the red metal, according to analysts. Prices are down 6.5% this year after hitting a nearly four-year high in late December.

Write to Amrith Ramkumar at [email protected] and Georgi Kantchev at [email protected]