Gold and the SPDR Gold Trust (ETF) (NYSEARCA:GLD) fell in Asia on a day that crude price rebound triggered by the Kuwait strike appeared to boost investor appetite for stocks. However, that all reverse this morning as a weaker US dollar has spurred more gold gains. The USD (CURRENCY:USD) lost ground against JPY in Tuesday morning trading, making gold cheaper for dollar holders.
Gold for June delivery was up nearly a full percent to $1,247.00 on the New York Mercantile Exchange’s Comex division. The price of the yellow metal remains up more than 17% in 2016 after it notched a 30-year high in 1Q2016.
Kuwait workers strike
Kuwait today suffered a crippling workers strike that cut the country’s oil production by nearly 50%. The development contributed to a rebound in oil prices. In stock markets, investors appeared to bet that the impact on Kuwait’s oil production would ease the global oil supply glut.
The strike in Kuwait seemed to compensate for the failed attempts to freeze oil production when oil pruducing countries met in Qatar over the weekend. Although all the major oil producers are feeling the pain of price decay in the oil market, Middle East politics appear to be overriding what one might call decorum. Saudi Arabia flatly refused to agree to a production freeze unless Iran also committed to a similar measure. But Iran is struggling to bring its output to the levels it was at before sanctions were imposed on it over its nuclear program.
Favorable U.S. job data
In the month of March, U.S. employers added 215,000 jobs. The Labor Department also said that all the domestic-focused sectors registered strong job growth last month. Investors have been looking for signs of improving economic conditions that could inspire the Fed to roll out more rate increases and the positive labor data for March appeared to have lifted sentiments.