Silver Higher, Gold retests $1,800 after Positive NFP Data

Silver (XAG/USD) advances for the second successive session, up 1.08% trading at $24.02 during the New York session.

On Friday, the U. S. Bureau of Labor Statistics revealed its Nonfarm Payrolls report for October, which reported the creation of 531000 new jobs added to the U. S. economy, higher than the foreseen estimates of 425000. The Unemployment Rate dropped to 4.6% from 4.7%, while labour force participation was unchanged.

Gold price is trading close to new highs over five successive days at $1,800, as a relaxed market mood boosts the underlying bullish momentum, with the focus now shifting to digest the Nonfarm Payrolls data.

Resurfacing concerns over the indebted Chinese property sector combined with pre-NFP cautious trading has weighed down on the investors’ sentiment, behind the traditional safe-haven gold.

Meanwhile, a renewed sliding in the U. S. Treasury yields across the curve amid risk-aversion has also collaborated with the latest leg up in gold price.

Gold price looks to extend Thursday’s upsurge well past the $1,800 barrier, helped by the market’s reassessment of the global tightening expectations.

Both the Federal Reserve and the Bank of England stood pat on interest rates at their respective November policy meeting, lifting the sentiment around the non-interest-bearing gold.

The U. S. jobs positive data has improved market sentiment, equity markets climb, while U. S. Treasury bond yields slide, benefitting precious metals.