Gold Prices Erase Gains After Release Of Jobs Report

Gold Prices Erase Gains After Release Of Jobs Report

The SPDR Gold Trust (ETF) (NYSEARCA:GLD) slipped lower during the early European hours as a relatively better jobs report released in the U.S. drove expectations of a faster pace of interest rate hikes by the Federal Reserve.

Better employment scenario

According to the U.S. Labor Department, the U.S. economy witnessed an uptick of 215,000 jobs in March, which surpassed economist expectations of 205,000. The department noted that average hourly earnings rose by 0.3%. Nevertheless, the unemployment rate increased to 5% from 4.9%.

Click Here For More Market Exclusive Updates & Analysis

The resilient numbers helped steer gold prices down as Gold Futures for June delivery traded down by 0.55% to $1,216.90. After the jobs data, minutes of the Federal Reserve meeting to be released on Wednesday will be of critical importance to markets. Also, data on the U.S. service sector to be released later in the week will be relevant to both the stock market and gold prices.

Yamana signs copper purchase agreement

In miners, Yamana Gold Inc. (USA) (NYSE:AUY) has informed shareholders that it has signed a copper purchase agreement with Altius Minerals Corporation. According to the agreement, Altius will pay Yamana a total of $60 million of cash along with 400,000 of its warrants. The agreement will pave the way for Altius to receive payment in relation to the copper production at Yamana’s Chapada mine in Brazil.

Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) recently noted that it will continue to pay dividends at an increased rate or else maintain the current rate on an annual basis. In view of which, the company’s board proposed a 10% hike in the 2015 dividend to $0.66 per share. The proposal will face the annual general meeting on 3 May 2016.

Lake Shore Gold Corp (NYSEMKT:LSG) and Tahoe Resources Inc (NYSE:TAHO) confirmed the conclusion of a merger, effective April 1. Reportedly, Tahoe has acquired all the common shares of Lake Shore.