Gold up 2 percent as dollar drops on U.S. jobs data

13-May (Reuters) – Gold rose two percent to above $1,200 an ounce on Wednesday, heading for a second session of gains as the dollar hit a near three-month low after disappointing U.S. employment data.

U.S. retail sales were also unchanged in April as households cut back on purchases of automobiles and other big-ticket items, suggesting the economy was struggling to make a strong rebound after barely growing in the first quarter.

Spot gold hit a five-week high of $1,218 an ounce after the U.S. data and was trading up 1.9 percent at $1,217.60 an ounce by 1432 GMT.

The metal added to Tuesday’s one percent gains, when it benefited from the softer dollar and volatility in global bond markets.

“A close above technical resistance at $1,215 could help gold exiting the narrow trading range between $1,175 and $1,225 the metal has been confined over the past ten weeks,” ActivTrades chief analyst Carlo Alberto de Casa said.

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