(Bloomberg) -- Gold snapped a five-day losing streak — its longest since February — as traders weighed a broader markets rally.
Bullion for immediate delivery traded near $2,415 an ounce after shedding almost 3% during the decline. The rebound may have been aided by Labor Department data that showed applications for unemployment benefits falling by the most in nearly a year.
“Gold has been trading more like a risk asset, aligned with equities and Big Tech,” said Nicky Shiels, head of metals strategy at Geneva-based MKS PAMP SA. “The relief rally we are seeing in risk assets after the jobless claims were lower and helped ease fears about a hard landing, has allowed gold to tag along.”
Gold hit a record last month, largely on expectations the Federal Reserve would soon deliver interest-rate cuts. Since then, global markets have seen a return of volatility, with concerns that the US may face a recession, and tighter policy from the Bank of Japan igniting a selloff in equities and sharp moves in currencies, including the yen. While bullion acts as a haven, it can also face short-term weakness during periods of market upheaval.
“Gold acts as a coiled spring, having been held down by outside market developments and deleveraging pressure, only to spring back as the market settles down, thereby showing its continued support,” said Ole Hansen, Saxo Bank’s head of commodity strategy.
Spot gold rose 1.4% to $2,415.89 an ounce as of 4:38 p.m. in London. Most metals — particularly silver, platinum and zinc — advanced.
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