LONDON (Thomson Financial) - Gold edged higher in early London trade as the dollar remained under pressure following weak U.S. payrolls data on Friday.
The U.S. labour department reported non-farm employment fell by 80,000 jobs in March and concerns over the state of the world's largest economy and the depreciation of its currency remain uppermost in trader's minds. Gold has been boosted by the ongoing financial turmoil because it acts as a store of wealth and as an alternative investment to the U.S. currency.
"U.S. non-farm payrolls data cemented the view that the U.S. is slowing significantly, and that the U.S. dollar therefore has little prospects for gains in the short term," said BNP Paribas analyst David Thurtell.
At 9:27 a.m., spot gold was trading at $914.78 an ounce against $909.80 in late New York trades on Friday.
Elevated oil prices are also providing support, with gold investors buying bullion to hedge against rising inflation.
In other precious metals, silver tracked gold higher to trade at $17.84 an ounce against $17.76 in late New York trades on Friday.
Platinum was steady at $2,008 an ounce against $2,009, while its sister metal palladium was at $438 an ounce against $439.75.
d.sheppard@thomson.com
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