Gold spiked higher on the news that a mere 18,000 nonfarm payrolls were created last month

The gold price surged higher to $1,538 per ounce higher Friday morning after the release of June’s dismal jobs report. After trading lower earlier, the price of gold spiked higher on the news that a mere 18,000 nonfarm payrolls were created last month – versus expectations of 105,000. The unemployment rate ticked up to 9.2%, higher by 0.1% versus the previous month. Both gold and silver moved lower heading into the jobs data, then ramped as the news hit the tape.

The anticipated hike in the Eurozone benchmark rate gave the expected impetus to the euro, although this only occurred later in the day after the US markets opened. A probable reason for this was a focus on concerns over the region’s debt crisis, as Trichet dismissed the idea of a medium-term lending facility for Ireland. Despite the delayed reaction of the euro, Gold
responded almost immediately to the ECB announcement. All made good gains in the afternoon session, although gold appeared as somewhat of a laggard, hinting that investors are beginning to feel that gold is a bit overbought at these levels.