Gold jumps on global cues

Buyers await clear signal from the government about PAN requirement on over Rs 1,00,000 cash sales

Standard gold jumped 0.82% in the benchmark Zaveri Bazaar here on Monday following the global movement. The street, however, remained deserted with buyers awaited the clear signal from the government about PAN (permanent account number) requirement on over Rs 1,00,000 cash sales.

Gold for spot delivery closed with a gain of Rs 220 to close at Rs 27080 per 10 grams. The yellow metal surpassed the psychological barrier of Rs 27,000 per 10 grams after nearly a week.

"The rise can be attributed only to negative US unemployment and nonfarm payroll data produced by the US Bureau of Labour Statistics today. There is no domestic influence in prices," said Kumar Jain, Kumar Jain, managing director, Umedmal Tilokchand Zaveri, a Zaveri Bazaar based bullion dealer.

In London, gold moved up by $19 to trade at $1222 an oz in early afternoon trade. Silver followed suit and jumped by $0.46 to trade at $17.24 an oz.

According to US Bureau of Labour Statistics, total nonfarm payroll employment increased by just 126,000 in March, which was well below the 247,000 forecast, while the unemployment rate was unchanged at 5.5%. Also, the change in total nonfarm payroll employment for January was revised downward from 239,000 to 201,000, and the change for February was revised from 295,000 to 264,000. With these revisions, employment gains in January and February combined were 69,000 less than previously reported. Over the past three months, job gains have averaged 197,000 per month.

"Gold was supported by stronger dollar and weakness in energy sector," said a bullion analyst.

Overall employment in mining declined by 11,000 in March. The industry has lost 30,000 jobs thus far in 2015, after adding 41,000 jobs in 2014. The employment declines in the first quarter of 2015, as well as the gains in 2014, were concentrated in support activities for mining, which includes support for oil and gas extraction.