Gold Prices Turn Higher but Stronger Dollar Weighs
Gold prices turned higher on Monday, but gains were expected to remain limited as Friday’s strong U.S. employment data continued to guide interest on the greenback.
Comex gold futures were up 0.15% at $1,339.20 a troy ounce by 08:15 a.m. ET (12:15 GMT), just off Friday’s nearly two-week lows of $1,330.10.
The greenback was boosted following your U.S. Department of Labor reported on Friday the fact that economy added 200,000 jobs in January, beating expectations for a 184,000 gain. The unemployment rate remained unchanged at 4.1% this month, in accordance with expectations.
The strong wage growth data fueled inflation expectations, and underlined the case for any Fed to lift interest rates more quickly this current year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.10% at 89.13.
Separately, Treasury yields continued to climb, while using the benchmark 10-year note hovering near in excess of 4 years.
Recent chatter that your world’s leading central banks starts off tightening monetary policy faster prior to now thought has sparked a major international bond market selloff in 2010, with yields inside the U.S., Europe and Asia all spiking higher.
Gold is responsive to moves inside dollar. A stronger dollar makes gold higher in price for holders of forex.
Elsewhere over the Comex, silver futures gained 0.51% to $17.79 a troy ounce.