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Gold gains by more than 1% amid dollar-selloff

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Investing.com - Gold prices shot up by over 1.9% on Monday after a better-than-expected U.S. jobs report on Friday sent the dollar soaring to levels ripe for profit taking.

Gold and the dollar tend to trade inversely with one another.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 1.93% at USD1,236.05 a troy ounce in U.S. trading on Monday, up from a session low of USD1,214.55 and down from a high of USD1,237.05 a troy ounce.

Gold futures were likely to find support at USD1,207.25 a troy ounce, Friday's low, and resistance at USD1,266.55, Tuesday's high.

On Friday in the U.S., the Bureau of Labor Statistics reported the U.S. economy added 195,000 nonfarm payrolls in June, well above analysts' calls for a 165,000 increase.

May's figure was revised upwards to 195,000 jobs from 175,000, while April's figure was revised upwards to 199,000 from 149,000.

The numbers fueled already growing speculation that the Federal Reserve will to taper stimulus programs in the coming months.

Stimulus measures such as the Fed's monthly USD85 billion bond-buying program weaken the dollar, and talk of their dismantling strengthens the currency though on Monday, markets felt the dollar had risen too high while gold was oversold - the yellow metal plunged by more than 3% on Friday after the release of the jobs data.

Investors kept an eye out towards the release of the minutes from the Federal Reserve's June meeting on Wednesday, hoping to gain further insight on the direction of U.S. monetary policy.

Elsewhere on the Comex, silver for September delivery was up 1.65% at USD19.045 a troy ounce, while copper for September delivery was up 1.10% and trading at USD3.099 a pound.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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