Gold rose over 2 percent to three-week highs on Tuesday as weak US jobs figures raised expectations the Federal Reserve will continue into next year its massive stimulus program that has bolstered bullion prices. Nonfarm payrolls rose by 148,000 in September, the Labour Department said, below the 180,000 forecast in a Reuters poll, increasing worries that the world's largest economy was losing momentum even before the government shutdown this month.
Buying continued after upbeat construction spending numbers for August. Spot gold rebounded from early morning losses after the data, rising over 2 percent to as high as $1,344.46 an ounce, its highest since September 30, by late morning. It was up 1.9 percent at $1,340.1 an ounce by 2:25 pm EDT (1825 GMT). The metal broke above technical resistance at its 100-day moving average of $1,325, with the next area of resistance seen at $1,350. US gold futures for December rose $26.8, or 2 percent, to settle at $1,342.6 an ounce. In other precious metals, silver mirrored gold's moves and rose 2.4 percent to $22.72 an ounce. Spot platinum was up 1 percent at $1.447.49 an ounce and spot palladium rose 0.3 percent to $749.22 an ounce.
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