Gold Moves Higher as the Dollar Weakens on Easing Inflation Worries

Gold traded higher early Friday in light electronic trading as the dollar continued to weaken after a report the previous day showed weaker-than-expected U.S. job growth. Gold for August delivery was last seen up US$60.90 to US$4,186.60 per ounce in thin trade with US markets closed ahead of the July 4 Independence Day holiday. The rise comes after the U.S. Bureau of Labor Statistics on Thursday reported the economy added just 57,000 jobs last month, down from 129,000 in May and well below expectations for an increase of 115,000, The weak payrolls report, combined with falling oil prices as the ceasefire between Iran and the U.S. holds, is easing inflation concerns and lowering expectations that the Federal Reserve will need to raise interest rates, a positive for gold since it pays no interest. "Gold trades higher for a third day, heading towards USD 4,200 and, following four weeks of losses, is on track for its best weekly gain since February, up 2.1%. Weak US jobs data and falling energy prices have reduced pressure on the Fed to raise rates this year, supporting bullion through a weaker dollar and softer yields," Saxo Bank wrote. The dollar.