Gold-related exchange traded funds surged Friday after updated employment data revealed employers in May added the fewest workers in almost six years, fueling speculation the Federal Reserve may push off an interest rate hike this month.
On Friday, the SPDR Gold Shares (NYSEArca: GLD) rose 2.4% and VanEck Vectors Gold Miners ETF (NYSEArca: GDX) jumped 8.9%.
Investors also capitalized on the advance through leveraged options, with the Direxion Daily Gold Miners Bull 3x Shares ETF (NYSEArca: NUGT) up 26.4% and ProShares Ultra Gold Miners (NYSEArca: GDXX) up 17.7% on Friday.
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Meanwhile, gold futures were 2.4% higher to $1,241.5 per ounce.
Gold rallied following the poor May jobs report. Nonfarm payrolls increased by only 38,000 last month, the smallest increase since September 2010, reports Lucia Mutikani for Reuters.
Moreover, the Labor Department revealed employers hired 59,000 fewer workers in March and April than previously expected.
“This is not a good report, and it may well give Fed officials second thoughts about increasing interest rates again this month or next, as some have suggested lately,” Peter Ireland, an economics professor at Boston College, told Reuters.