Gold Eases From Lows But Remains Under Pressure as Dollar Advances
Investing.com – Gold prices remained under pressure as being the dollar moved off lows after services data topped economists’ forecasts reaffirming investor expectation that bullish economic growth would strengthen the Federal Reserve’s case to get rates more aggressively.
Gold futures for February delivery over the Comex division from the Nyc Mercantile Exchange rose by $1.10, or 0.09%, to $1,338.50 a troy ounce.
ISM nonmanufacturing data for January showed an uptick to 59.9, beating expectations of 56.5.
Scotia bank stated that upbeat ISM non-manufacturing data had been a “strong plus for growth additionally, the components are hawkish to your Federal Open Market Committee.”
In a rising interest rate environment, investor appetite for gold weakens because opportunity worth of holding the dear metal increases when compared with interest-bearing assets like bonds.
Gold suffered its biggest weekly loss since December a while back as data showed traders appear cautious of increasing their bullish bets on gold.
Speculative net long position in gold fell by about 7,000 contracts to your net long 207,300 contracts, according to the latest Commitment of Traders (COT) report. That it was the primary decline in net long positions in a month.
In other precious metal trade, silver futures rose 0.13% to $16.73 a troy ounce, while platinum futures fell 0.31% to $996.30.
Copper rose 1.18% to $3.23, while natural gas fell 3.37% to $2.75.