Friday, 2nd June 2006 (5696 views)

Gold futures recovered today (June 2nd) following yesterday's month low.

A stronger dollar pushed gold to $630.50 per ounce in New York yesterday, but the precious metal was up today.

US labour market statistics showed only a modest rise in the number of jobs last month, which left analysts disappointed and pushed the dollar down.

As a result, gold returned to $642 per ounce a short time ago, still some way short of the $730 per ounce it enjoyed last month.

Despite today's rise, analysts expect gold to face further declines as a result of a more resilient dollar and the impact of potential rate rises.

The Federal Reserve is expected to continue raising rates this year in a bid to stave off inflation.

Higher interest rates could make the dollar a more attractive investment, pushing gold and other stocks lower.

 

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