Gold price jumped on Friday as U.S. military launched cruise missile strikes on Syrian and the March Jobs report is much weaker than expected. Spot gold rose 1.03 percent to $1,264.64 per ounce in the early trading. While gold for June delivery rose 1.09 percent to $1,266.90.
The United States launched a military strike on Thursday, against the Syrian government air base. The strike, executed using 59 Tomahawk missiles, is a response to a chemical weapons attack in Syria earlier this week, which killed more than 80 civilians
“It remains unlikely that the U.S. will follow up with further attacks, but the incident will now create further tensions between the U.S. and Russia and destabilize the region,” and may also signal a new U.S. posture on international intervention that could turn into a more aggressive stance on North Korea, said Peter Hug, global trading director at Kitco, in a note.
Gold price moves higher after the job report in March missed analysts’ estimate. Nonfarm payrolls grew by just 98,000 in March, according to a closely watched report Friday from the Bureau of Labor Statistics. Analysts polled by Reuters had expected to increase by 180,000 in March.
"Clearly this raises the stakes and we expect to see gold prices continuing to push higher in the short-term, at least until there is some clarity around whether this is a one-off or develops into something more," ANZ analyst Daniel Hynes said.