Gold prices rise after US nonfarm payrolls

LONDON, Nov 1 (Reuters): Gold prices rose on Friday, rebounding from profit-taking during the previous session, as the US dollar weakened after data showed that US job growth slowed sharply in October.
Spot gold added 0.4 per cent to $2,754 per ounce by 1248 GMT. Prices fell by 1.5 per cent on Thursday as some traders took profit after the precious metal hit a record high of $2,790.15.
"Despite Thursday's correction, gold remains in a strong uptrend with several positive factors aligned to drive further gains," said Hugo Pascal, precious metals trader at InProved.
Bullion rose by 4 per cent in October due to investor anxiety about the US Nov. 5 presidential election. Polls indicate a close race between Donald Trump and Kamala Harris.
US job growth last month was affected by disruptions from hurricanes and strikes by aerospace factory workers. However, the unemployment rate held steady, and economists expected the Federal Reserve to sort through the noise and cut interest rates by 25 basis points next week.
Citi said in a note that gold prices were on track to hit $3,000 per ounce over the next six months amid a deterioration in the US labour market and demand from physically backed gold exchange-traded funds (ETFs).
Global gold ETFs, which had three consecutive years of outflows against a backdrop of high interest rates, saw a fifth consecutive month of inflows in September.
Meanwhile, high gold prices, which have risen 33 per cent so far this year and are heading for the largest annual growth since 1979, continue to affect physical demand in major Asian regions.
In China, gold consumption fell by 11 per cent in the first nine months of 2024. In India, the share of coins and bars in sales is rising as buyers are unwilling to pay increased making charges for jewellery.
Among other metals, spot silver was up 0.5 per cent at $32.80 per ounce, while platinum gained 0.9 per cent to $996.90 and palladium added 2.9 per cent to $1,137.50.