Some investors viewed the possible lack of jobs growth in August as a sign the world's largest economy might be heading back into recession, heightening demand for precious metal. It was the first time in nearly annually the economy had failed to create new work.
Some said the report increased the odds of more stimulus in the Federal Reserve when it meets on September 20-21, also an optimistic for bullion. Gold's sojourn to all-time highs was largely created out on added liquidity from stimulus measures and also a gloomy economic outlook.
"I think there was a lot of disappointment with the employment numbers and that kicked off speculation of further quantitative easing or some kind of monetary response, " said HSBC metals analyst as well as senior vice president James Steel.
By 3: twenty three p. m. EDT (1923 GMT), spot gold had been up $57. 25, or 3. 1%, at $1, 881. 69 for each ounce. It earlier rose to a high associated with $1, 879. 30, its highest level since achieving its record at $1, 911. 46 on August. 23.
Benchmark US gold December futures on the actual COMEX exchange finished 2. 6%, or $47. 8 greater, at $1, 876. 90 an ounce. It rose up to $1, 887. 40, also its highest since it's Aug. 23 record at $1, 917. 90.
Gold had notched up a sizable portion of the day's gain before the data, with traders having braced for yet another downbeat report in front of the long Labour Day holiday. Trading volume picked up slightly from the week of subdued activity.
"The (gold) market was virtually all on one-side, largely buying interest after the actual jobs report, " Steel said.
US employment growth ground to some halt in August, as sagging confidence discouraged currently skittish businesses from hiring. Jobs creation in July and June were trimmed with a total of 58, 000 jobs, and the joblessness rate stood at 9. 1%.
The metal flower 12% in August, its strongest monthly gain since November 2009 and it has hit record highs several times in recent weeks carrying out a run of soft economic data from america.
Along with gold, the rush to hold safe assets trigger a rally in US Treasury securities and the united states dollar dropped against the Swiss franc and yen.
FINANCIAL DEBT TROUBLES
Gold had already risen about 2% in overnight trade in anticipation from the US labor market readings and on growing worries about Greece's capability to meet its deficit targets.
In the latest distort in Greece's sovereign debt saga, talks between Athens and international inspectors on whether it's met conditions for a new aid tranche were placed on hold.
Disagreements over why and by how a lot its deficit cuts programme has fallen behind routine stalled discussions.
"We're seeing a new round associated with flight into so-called safe haven assets. The debt problems within the euro zone are still a worry and it provides an opportunity for market speculators to buy precious metal, " said Peter Fertig, a consultant at Quantitative Item Research.
Spot silver tracked gold to jump four. 65% to $43. 34 an ounce by past due afternoon, following a 3. 2% drop in the prior week.
Bolivia, the world's sixth-largest silver producing country by output this year, plans to raise mining royalties to take benefit of high prices and bolster the state's role in the market.
Elsewhere, spot platinum rose to $1, 879. forty-nine an ounce from $1, 843. 85 in past due Thursday business, while spot palladium slipped to $773 a good ounce from $779. 35 previously.