Nov. 6 (Bloomberg) -- Gold rose to a record, Treasuries gained and the dollar fell after U.S. unemployment reached a 26- year high, reinforcing speculation the Federal Reserve will keep interest rates near zero into next year.
The Standard & Poor’s 500 Index gained 0.3 percent after an initial drop following the Labor Department saying the unemployment rate last month jumped to 10.2 percent, the highest level since 1983. Gold touched $1,101.90 an ounce, surpassing an all-time high for the third time this week. Oil fell for a second day on concern the jobless rate will hurt energy demand.
“The job market will have to stabilize and maybe get better before we see the Fed doing anything,” said Jay Mueller, who manages about $3 billion of bonds at Wells Fargo Capital Management in Milwaukee. “This is going to be a slow grind in terms of recovery.”
The S&P 500 rose to 1,069.30 at 4:01 p.m. in New York. The Dow Jones Industrial Average added 17.46 points, 0.2 percent, to 10,023.42. Both benchmarks rallied 3.2 percent this week.
Employers eliminated 190,000 jobs in October after a reduction of 219,000 in the previous month, the government reported. The median estimate of 84 economists in a Bloomberg survey was for a reduction of 175,000. The jobless rate rose from 9.9 percent.
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