Gold Rebounds To End Higher After U.S. Jobs Data, But Sheds 0.7% For Week

(RTTNews) - Gold futures snapped a three-day loss to ended higher on Friday, after a slew of economic data from the U.S. with the jobs report indicating some softness in employment that rose less than expected in July while unemployment increased.

The precious metal found support following a sell-off in global equity markets amid the ongoing unrest in Ukraine and the Middle East, with news about Argentina missing a debt repayment deadline providing further impetus.

A Labor Department report on Friday showed employment in the U.S. rose less than expected in July, after reporting a sharp jump in employment the previous month. Meanwhile, unemployment in July increased as compared to the previous month.

For the week, gold futures shed about 0.7 percent.

Among other economic news, a report from the U.S. Commerce Department showed personal income and spending to have increased in line with economist estimates in the month of June. Meanwhile, activity in the U.S. manufacturing sector expanded at a notably faster rate in July, with the index of activity climbing to a three-year high, a report from the Institute for Supply Management showed Friday.

U.S. construction spending unexpectedly saw a sharp drop in June, with spending on public construction indicating a substantial decrease, a Commerce Department report showed Friday.

Gold for December delivery, the most actively traded contract, shed $12.30 or 1.0 percent to close at $1,293.60 an ounce on the Comex division of the New York Mercantile Exchange on Friday.

Gold for December delivery scaled an intraday high of $1,298.40 and a low of $1,281.00 an ounce.

On Wednesday, gold futures ended lower tracking a slump in global equity markets, after some disappointing U.S. economic data with initial claims for unemployment benefits rising more than expected last week.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 801.84 from its previous close on Friday.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.28 on Friday, down from its previous close of 81.46 late Thursday in North American trade. The dollar scaled a high of 81.54 intraday and a low of 81.19.

The euro traded higher against the dollar at $1.3429 on Friday, as compared to its previous close of $1.3390 late Thursday in North American trade. The euro scaled a high of $1.3444 intraday and a low of $1.3380.

In economic news from the U.S., a report from the Labor Department showed that a less than expected 209,000 jobs were added in July. The consensus estimate called for an addition of 233,000 jobs after non-farm payrolls expanded by 288,000 in the previous month. Meanwhile, unemployment edged up to a seasonally adjusted 6.2 percent in July, from 6.1 percent in the previous month.

A report from the U.S. Commerce Department showed personal income increased by 0.4 percent in June, matching the increase seen in the previous month. Personal spending rose by 0.4 percent in June following an upwardly revised 0.3 percent increase in May.

Data from Thomson Reuters and the University of Michigan showed U.S. consumer sentiment to have deteriorated less than previously estimated in the month of July, with the final reading coming in at 81.8, compared to the mid-month reading of 81.3.

A report from the Institute for Supply Management showed activity in the manufacturing sector expanded at a notably faster rate in July, with the ISM Purchasing Managers Index climbing to 57.1, up from 55.3 in June.

A Commerce Department report said construction spending in the U.S. tumbled by 1.8 percent to an annual rate of $950.2 billion in June from the revised May estimate of $967.8 billion. The sharp drop came as a surprise to economists, who had expected construction spending to increase by about 0.5 percent.

From Europe, British manufacturing sector logged its weakest growth in a year in July as growth in output and new orders eased from June, a survey by Markit Economics and the Chartered Institute of Purchasing and Supply showed Friday. The Markit/CIPS manufacturing Purchasing Managers' Index fell to 55.4 in July from a revised 57.2 in June. Economists expected the index to come in at 57.2, down from June's original estimate of 57.5.