New York 09/04/2012 - Gold futures bounced Monday with last week's disappointing non-farm payrolls data resurrecting hopes for additional Federal Reserve stimulus (QE3).

Gold for June delivery on the Comex division of the New York Mercantile Exchange was last up $15.90 at $1,646.10 an ounce. Trade has ranged from $1,636.70 to $1,648.80.

Gold struggled mightily last week, falling to near $1,600, after the minutes from March 13 meeting of the Federal Open Market Committee (FOMC) disclosed that another boost of liquidity from the US central bank would only happen if the economy “lost momentum” or if inflation seemed likely to remain below its mandate consistent rate of two percent.

Monetary accommodation is seen as unequivocally bullish for gold as cheap money tends to debase the dollar and create future inflationary risks.

Therefore, Friday's worse-than-expected US non-farm payroll report has emboldened the gold bulls, who still believe that QE3 will be launched in the next couple months.

The American economy only added 120,000 jobs in March - the smallest gain since last October - compared with an upwardly revised 240,000 in February and below expectations of a 207,000 reading.

“The report had an undeniably weak tone and will raise doubts about the strength of the labour market,” Barclays Capital said in a report.

“While our economists do not believe that this report alone will propel renewed policy action [at the April 24 meeting], the door to further quantitative easing remains ajar and may shift the decision point to the June FOMC as the Fed continues to monitor the incoming data,” the report added.

Elsewhere, the Chinese government reported overnight that inflation rose at an annual rate of 3.6 percent in March, slightly higher than expected. This lent some support to gold as the yellow-metal is often bought as a hedge against inflation.

In the wider-markets, the dollar was steady at 1.3056 against the euro, while the Dow Jones industrial average and S&P 500 opened sharply lower, down 1.01 percent and 0.81 percent, respectively.

“There's really no other data on the docket today, so people are left chewing the bad taste [from the jobs report],” a US-based fund manager said.

“It's going to be a risk-off day in the industrial commodities and equities but gold should catch a bid because of the QE3 implications,” he added.

As for the other precious metals, Comex silver for May delivery was down 0.2 cents at $31.715 an ounce. Trade has ranged from $31.575 to $32.100.

Platinum futures for June delivery on the Nymex were up $11 at $1618.60 an ounce, while the June palladium contract was at $648.30 an ounce, up $3.25.

• Oil Prices U.S. Dollar And Interest Rate Expectations Could Push Gold Higher Next Week – Analysts   (2016-01-30 03:49:19)
• Price of Gold in 2016: Will It Break Out or Melt Down?   (2016-01-19 05:33:39)
• Gold Sees Decent Short-Covering Bounce, Some Technical Buying   (2015-12-22 04:50:39)
• PRECIOUS-Gold falls as looming U.S. rate rise lifts dollar Read more at Reutershttp://www.reuters.com/article/global-precious-idUSL3N14334F20151214#K113K1O55Bq13ITK.99   (2015-12-14 18:49:37)
• PRECIOUS-Gold falls as looming U.S. rate rise lifts dollar Read more at Reutershttp://www.reuters.com/article/global-precious-idUSL3N14334F20151214#K113K1O55Bq13ITK.99   (2015-12-14 18:49:32)
• Gold Poised for Longest Weekly Slump Since September Before Data   (2014-04-04 09:52:32)
• Gold Bulls Run for $1,400 as Ukraine Turmoil Fuels Haven Demand    (2014-03-04 09:36:22)
• Gold to Oil Climb as Commodities Reach Six-Month High on Ukraine    (2014-03-04 09:35:49)
• Gold Fix Study Shows Signs of Decade of Bank Manipulation   (2014-03-01 08:47:36)
• Gold Rises to 17-Week High on Signs U.s. Economy Sputters    (2014-02-26 08:29:25)