Gold Soars To Six-Week Highs on Weak Dollar and Rising Geopolitical Risks
Gold futures advanced on Monday on the back of a weakening dollar that has been weighed down by a weaker-than-expected U.S. employment report. The geopolitical risks which pressurized Asian stocks also caused investors to flock into safe-haven assets such as gold.
Gold added 0.34 percent in Asian morning session to trade around $1281.10 per barrel as the dollar languished near a seven-month low on Monday. The dollar index was last trading flat at 96.716, under pressure from data on U.S. jobs growth for May that showed the world’s largest economy only added 138,000 jobs in the reported month. The result fell well below forecast for a rise of 185,000 jobs.
Gold jumped to the highest level since April 21st attacks in London over the weekend added concerns over geopolitical risks in the U.K. ahead of the country’s general election that will be held on Thursday. Recent polls showed a tighter gap between the Conservatives, led by Prime Minister Theresa May, and the Labour Party, under left-winger Jeremy Corbyn.
Buy Stop at 1282.00, Take profit 1288.00, Stop loss at 1279.00