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SINGAPORE. – Gold yesterday retained gains from its biggest daily jump in nearly nine months as weak US jobs data eased fears that the US Federal Reserve would hike rates this year. Spot gold was little changed at $1 136,60 an ounce by 3.25am. The metal had gained 2,2 percent on Friday, its biggest one-day rise since January 15. Data on Friday showed that US employers slammed the brakes on hiring over the last two months.

Non-farm payrolls rose by only 142 000 last month, below economists’ expectations of 203 000. Gold, which had been weighed down all year by expectations that the US central bank could soon raise rates, rallied as the dollar fell. The metal is still down nearly 4 percent this year.

“The Fed is extremely unlikely to begin policy normalisation as soon as this month, and December is looking tenuous too,” ANZ analysts said, referring to the remaining two policy meetings scheduled for this year.

The Fed had refrained from raising rates at its last policy meeting in September, citing weakness in the global economy and volatility in financial markets.

Higher rates would dent demand for non-interest-paying gold, while boosting the dollar. – Reuters.