Gold Inches Higher On Weaker-Than-Expected U.S. Jobs Data

On the technical front, Reuters technical analyst Wang Tao predicted that spot gold may test a price resistance at $1,847 an ounce. If the bullion moves above that level, it could climb to $1,876.

In physical trading, gold demand in India is still affected by the surge in COVID-19 infections. Retail purchases fell to almost zero as jewelry stores were closed across the country. Dealers offered discounts of up to $3 per ounce. In China, gold premiums stayed flat because the nation was closed most of the week, but it was because of the observance of the Labor Day holidays.

In a related development, the U.S. Commodity Futures Trading Commission (CFTC) reported that market speculators raised their bullish stance in COMEX gold contracts for the week that ended on May 4. Also, the holdings of SPDR Gold Trust, the largest gold-backed exchange-traded fund in the world, increased by 0.6%. It reflects current market sentiment.

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