Gold prices rose on Monday after the U.S. Labor Department’s report on Friday showed that the economy shed 701,000 jobs in March, halting decade-long record of growth. Coronavirus fears also drove investors towards the safe-haven metal.
Spot gold rose about 1 percent to $1,634.99 per ounce, while U.S. gold futures were up 1.1 percent at $1,663.00 per ounce.
U.S. employment plunged by 701,000 jobs in March after an increase of an upwardly revised 275,000 jobs in February.
Economists had expected employment to slump by 100,000 jobs compared to the addition of 273,000 jobs originally reported for the previous month.
The much bigger than expected decrease came as employment in the leisure and hospitality sector plummeted by 459,000 jobs, mainly in food services and drinking places. The jobless rate rose to 4.4 percent from 3.5 percent in February.
Meanwhile, the United States on Sunday entered one of the most critical weeks so far in the coronavirus crisis, with government officials warning that the death toll in places such as New York, Michigan and Louisiana was a sign of trouble to come in other states.
The material has been provided by InstaForex Company – www.instaforex.com