Gold rises, yet may face pressure from the dollar
Gold rose on Thursday early trading after the lower-than-expected drop in non farm payrolls revived concerns the Fed may consider further monetary easing.
While the latest announcements by the Fed referred to no possibility of adding to stimulus amid signs of improvement in U.S. data, the jobs report released on Friday reignited worries policy makers may rethink about expanding non-standard measures as Nonfarm payrolls increased 120 thousand in March, after rising 240 thousand (revised from 227 thousand) in February.
Yet, the same report showed that unemployment rate in the U.S. unexpectedly fell to 8.2% from a prior of 8.3%.
On the other hand, China's inflation surged above forecasts in March, thereby triggering expectations policy makers may add to stimulus and hence boosting demand on gold as an inflation hedge.
China's annual CPI soared to 3.6% compared with a prior of 3.2% and estimates of 3.4%.
Precious gold is currently trading around $1642.045 an ounce where it rose after touching a low of $1629.25 while the day's high was seen at $1646.85.
However, gold prices may face pressure as the dollar advanced against a basket of major currencies, paring some of its losses incurred on Friday.
The dollar index is currently hovering near 79.85 compared with the day's opening of 79.79.
On the physical side, Indian's jewelers closed whom their shops for three weeks to protest on a new tax, called off their strike on Saturday.