Gold Prices Fall Below Key $1,300 Level, Trade Near Lowest Level of the Month

0
105
© Reuters. © Reuters.

Investing.com – prices recovered slightly on Friday in Asia, but still traded below the key $1,300 level and are now near its lowest level of the month.

traded on the Comex division of the New York Mercantile Exchange were up 0.2% at $1,295.75 per ounce by 12:45 AM ET (04:45 ).

Strong U.S. labor and inflation data released overnight were cited as headwind for the safe-haven gold today.

The reported on Thursday that its core producer price index () for final demand increased 0.3% last month, above economists’ forecasts for a 0.2% increase. In the 12 months through March, the core rose 2.4%.

Article continues below Advertisement...

It also reported that initial jobless claims dropped by 8,000 to a seasonally adjusted 196,000 for the week ended April 7, confounding expectations for a rise.

Meanwhile, the minutes published at its last FOMC meeting showed the U.S. Federal Reserve has still not completely ruled out raising interest rates this year, putting pressure on the non-interest bearing gold.

“The minutes confirmed that if the data continue to support the economy, a rate hike could be on the table at the back end of this year. Luckily for the dollar bears, this wasn’t the majority view, at least, not for the time being,” said Naeem Aslam, analyst at ThinkMarkets, in an ETF Trends article.

“I do believe that for the time being the Fed is going to continue to sit on its hands and just monitor the situation carefully. The evidence of this comes from the fact that the gold price is still trading above the $1,300 mark. For bulls, this is a critical level, it sends a strong signal of recovery and hope. As long as the price stays above this critical mark, we have hope that the price may cross the $1,350 level,” Aslam said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the , it is one of the riskiest investment forms possible.

Source: Investing.com