Poor Employment Report Spurred Gold Outlook SPDR Gold Trust (ETF) (NYSEARCA:GLD)

Poor Employment Report Spurred Gold  Outlook SPDR Gold Trust (ETF) (NYSEARCA:GLD)

SPDR Gold Trust (ETF) (NYSEARCA:GLD) prices touched a two-week high today, paring earlier losses, after U.S. employment data served as a disappointed to early rate hike expectations.

Early rate hike hopes stand faded

Yellow metal that has garnered nearly 17% gains this year alone had been under pressure since the Federal Reserve sounded hawkish over its monetary tightening trajectory. However, Friday’s nonfarm employment data has pushed aside that optimism for a while.

According to the data, U.S. added the least number of jobs last month, which marks lowest levels in last five and a half years. The report boosted outlook for bullion as its Futures contract for August delivery surged to $1,243.35, adding 0.04%. Meanwhile, weak dollar has further helped gold to return to its two-week highs. Traders are now looking forward to Fed Chair, Janet Yellen’s, comments later today for fresh clues over monetary policy direction.

Yamana gains from gold rally
Rally in gold prices has proved to be a blessing for gold mining industry, where, Yamana Gold Inc. (NYSE:AUY) has gained the most. The company’s low operating costs alongside its acquisition of value assets has helped it to outshine its counterparts in the industry.

During a facility visit of Kibali Gold mine in Democratic Republic of Congo, Randgold Resources Ltd. (NASDAQ:GOLD) CEO, Mark Bristow, underscored the link between mining growth and betterment of lives of African people. Bristow noted that Kibali mine has a resource base of 20 million ounces of gold, alongside reserves of 11 million ounces, which places it as the largest mine in the world. Though full capacity of mine can only be harnessed by 2018, it currently produces 600,000 ounces of gold and provides employment to 4,000 people, added Bristow.

Another miner, Gold Resource Corporation (NYSEMKT:GORO) has recently declared monthly divided of $0.016 per share to shareholders, which will be paid out on June 23, 2016.