Gold prices were firm for a second day Tuesday, as traders geared up for an all-important U.S. jobs report later in the week.
The April jobs report will go a long way in determining whether the economy’s winter rough patch was a mere blip.
If Federal Reserve members are convinced that weakness was temporary, it is likely they will raise interest rates in either July or September.
A June hike, while supposedly on the table for discussion by the Fed, is a long shot, according to most analysts.
Federal Reserve Bank of Chicago President Charles Evans said yesterday he remains reluctant to raise interest rates after data confirmed the second weak winter in a row.
“Economic activity appears to be on a solid, sustainable growth path, which, on its own, would support a rate hike soon,” Evans said in remarks prepared for a speech Monday in Columbus, Indiana.
“However, the weak first-quarter data do give me pause, and I would like to see confirmation that they are indeed a transitory aberration,” he added.
Gold was up $3 at $1190, having bounced around the $1200 mark for the past few months.
A weaker dollar has helped gold and other commodities stabilize after losses earlier in the year.
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