(Kitco News) – Gold prices are pushing deeper into positive territory as the U.S. economy created fewer jobs than expected in May. Friday, the Bureau of Labor Statistics said 559,000 jobs were created in last month; economists were expecting to see job gains of around 645,000.
Meanwhile, the unemployment rate came in at 5.8%, down compared to April’s level at 6.1%; consensus forecasts were calling for a reading of 5.9%.
Gold prices saw some modest gains ahead of the report and have jumped higher in initial reaction to the weaker-than-expected employment numbers. August gold futures last traded at $1,884 an ounce, up 0.57% on the day.
John Feneck, founder of Feneck consulting, said that gold prices and the gold equity sector will continue to benefit from the weaker-than-expected employment numbers.
“Another disappointment and in line with what we have been predicting for months: that job recovery will take a long time, as Americans have become used to handouts,” he said.