By William L. Watts, MarketWatch
FRANKFURT (MarketWatch) — Gold futures posted minor gains Monday in thin trading conditions, as investors continued to weigh the implications of last week’s stronger-than-expected rise in U.S. nonfarm payrolls, analysts said.
Gold for December delivery GCZ2 +0.08% advanced $1.70, or 0.1%, to trade at $1,611.40 an ounce in electronic trade.
Gold futures snapped a three-day losing streak to post a winning session Friday after data showed the U.S. economy added 163,000 nonfarm jobs in July, topping the average forecast of a rise of 100,000. The unemployment rate, however, edged up to 8.3% from 8.2%.
Stronger economic data is a double-edged sword for gold, wrote strategists at Credit Suisse, in a research note.
“On the one hand, the U.S. dollar tends to depreciate after good economic data due to reduced safe haven flows. That is positive for gold,” they said.
”On the other hand, good economic data means that there is a lower probability of further monetary easing, which is negative for gold. We think the most likely outcome for this week is sideways trading.”
The dollar index DXY +0.22% , which measures the U.S. unit against a basket of six major rivals, rose to 82.46 from 82.39 in North American trade late Friday.
Other metals lost ground, with silver futures SIU2 -0.54% off 14.1 cents an ounce to $27.66.
September copper futures HGU2 -0.25% lost 1 cent to $3.35 a pound.
October platinum PLV2 -1.16% fell $16.70 an ounce to $1,397.70. September palladium PAU2 -0.32% dropped $1.95 to $576.25 an ounce.
William L. Watts is MarketWatch's European bureau chief, based in Frankfurt.
