Gold Jumps Most Since April as Trades Take Long View on Rates
- U.S. payrolls gain paves way for December Fed rate increase
- `It may be many months before the next' rate rise: BMO
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Gold traders are taking the long view, spurring enough optimism in the market to drive the biggest price gain since April and make miners some of the best performing stocks.
While a government report showing gains for U.S. jobs reinforced expectations that the Federal Reserve will raise interest rates this month, bullion investors saw past the headline numbers. The underemployment rate crept higher, reflecting a rise in the number working part-time for economic reasons, one of Fed Chair Janet Yellen’s favorite measures of labor-market slack. That spurred hope for gold bulls that the pace of tightening will be slow.