Bullion wiped out losses earlier this year with a 7.8% rise over May amid signs of accelerating inflation. Fresh virus outbreaks and patchy economic data have also boosted gold, which is again drawing investors via exchange-traded funds — a major driver of last year’s rally.
Key data this week include U.S. jobs figures on Friday, following a surprisingly poor reading last month that highlighted potential headwinds to economic recovery. The Bloomberg Dollar Index is threatening to fall to its lowest since 2014 after a second monthly decline in May.
Bloomberg“Momentum in the gold market remains strong, with investor inflows picking up sharply,” Australia & New Zealand Banking Group Ltd. wrote in an emailed note. “Thus a weak payrolls number on Friday could jolt prices even higher.”
Spot gold rose 0.4% to $1,914.61 an ounce by 7:23 a.m. in London. It’s up 0.9% this year, although well short of its record $2,063.5 an ounce hit in August. Silver, platinum and palladium all rose.
