Precious Metals Preview: Gold Stays Broadly Supported

COMEX Gold stays supported after testing near five month lows. Gold futures were flat Friday after a closely anticipated US jobs report. The US jobless rate fell to the lowest level since December 2000, dropping to 3.9% from 4.1%. Tthe US created just 164,000 new jobs in April, below forecast. Hourly wages are up 2.6% year-over-year, but were up only 0.1% from the previous month. While two more rate hikes are expected in 2018, the Fed may hold off until later in the summer instead of June. The Labor Department said non-farm payroll employment climbed by 164,000 jobs in April compared to economist estimates for an increase of about 192,000 jobs. Meanwhile, the report said the unemployment rate fell to 3.9 percent in April after holding at 4.1 percent for six straight months. The unemployment rate had been expected to edge down to 4.0 percent. With the bigger than expected decrease, the unemployment rate dropped to its lowest level since a matching rate in December of 2000. The drop in the unemployment rate was primarily due to a decrease in the size of the labor force, however, as the labor force shrank by 236,000 people compared to the 3,000 person uptick in the household survey measure of employment. Compared to the same month a year, average hourly earnings were up by 2.6 percent in April, unchanged compared to the revised growth seen in March. MCX Gold closed around Rs 31050 per 10 grams in last session