Gold prices added a few dollars in the Asian session as buyers bought up the cheap commodity pushing it up $5.40 to trade at 1173.50 after gold tumbled last week and remains without support. The metal had fallen to $1,162.35 on Friday, its lowest since March 19, after data showed US job growth accelerated sharply in May and wages picked up. The report, indicating signs of strong momentum in the US economy, bolstered expectations the Federal Reserve will begin to raise rates in September and sent the dollar rallying to a 13-year peak against the yen.
Gold declined 9.8% from the year’s closing high in January on prospects for the first interest rate increase since 2006.
Odds that the Federal Reserve will tighten in September rose to 33% after the best U.S. jobs report in five months, from 27% before the figures on Friday. The rise in payrolls suggested the central bank
was making progress toward its goal of maximum employment, according to William C. Dudley, president of the Fed’s Bank of New York.
This rally added slight momentum to Aussie, which is still finding support at 0.76 handle, but remains in a tight range between 0.76 and 0.7650 level.