Gold Edges up with Jobs Report on Horizon

Gold prices rose cautiously Monday, in an attempt to rebound from the prior week’s decline as a slew of economic reports were poised to make for some volatile sessions throughout the week.

Gold for June delivery GCM4 -0.12%  was up $2.80, or 0.2%, to $1,297.10 an ounce. May silver SIK4 +0.51% SIK4 +0.51% SIK4 +0.51% , which had endured a nine-session losing streak until Friday, rose 3 cents to $19.83 an ounce.

This week ends with the jobs report, but other notable reports will be sprinkled across the next few days including car sales, initial jobless claims and the ADP jobs number.

Last week, gold futures gave up about 3%, closing Friday below $1,300 an ounce as some upbeat economic data helped draw investors back to equities and away from the perceived safe have.

Standard Bank’s Walter de Wet says he’s looking for more downside, with his average gold price forecast of $1,180 an ounce in the second quarter.

“The positive news is that if the gold price falls far enough, Asia demand will improve and should, as it did last year, provide some support on the downside,” he said. “However, until U.S. monetary policy has normalized, we believe that gold rallies will be short-lived.”

Elsewhere in metals trading, April platinum PLJ4 +1.20%  gained $13.90, or 1%, to $1,418.60 an ounce while June palladium PAM4 +0.52%  tacked on $1.15 to $774.85 an ounce. High-grade copper for May delivery HGK4 -0.36%  slipped 1 cent to $3.03 a pound.

Source: Market Watch