(Bloomberg) — Gold added to its biggest monthly gain since July as the dollar weakened and investors awaited fresh data on the U.S. economy to feed the debate about inflation.
Bullion wiped out losses earlier this year with a 7.8% rise over May amid signs of accelerating inflation. Fresh virus outbreaks and patchy economic data have also boosted gold, which is again drawing investors via exchange-traded funds — a major driver of last year’s rally.
Key data due this week include U.S. jobs figures on Friday, following a surprisingly weak reading last month that highlighted potential headwinds for economic recovery. The Bloomberg Dollar Index is threatening to fall to its lowest since 2014 after a second monthly decline in May.
“Momentum in the gold market remains strong, with investor inflows picking up sharply,” Australia & New Zealand Banking Group Ltd. wrote in an emailed note. “Thus a weak payrolls number on Friday could jolt prices even higher.”
Spot gold rose 0.3% to $1,912.71 an ounce by 11:30 a.m. Shanghai time. It’s up 0.8% this year, well short of its record $2,063.5 an ounce in August last year. Silver, platinum and palladium all rose.
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