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Thursday, August 11, 2022

Gold Prices Turn Negative as Dollar Strength Weighs

Gold Prices Turn Negative as Dollar Strength Weighs© Reuters.

Investing.com – Gold prices remained on track for a third-weekly slump as risk-on sentiment continued to support dollar strength, pressuring demand for the yellow metal.

for February delivery on the Comex division of the New York Mercantile Exchange fell by $4.00, or 0.34%, to $1249.00 a troy ounce.

Gold extended losses from Thursday as a mostly upbeat nonfarm payrolls and reports of a breakthrough in Brexit talks reduced safe-haven demand, pressuring gold to its largest weekly drop since May.

The Labor Department said Friday, U.S. non-farm payrolls rose by in November, as the post-hurricane recovery in the labor market continued. That beat economists’ forecasts for 200,000 new jobs.

Wage growth, however, undershot expectations compared to expectations for a 0.3% increase, while wage growth in the previous month was revised downwards dropping to 0.1%

Meanwhile, uncertainty over the progress of Brexit eased, following reports that the UK agreed to pay up €50 billion to settle the so-called Brexit divorce bill. The agreement of the divorce bill paves the way for the UK and EU to move to negotiation the terms of a crucial trade deal.

Gold prices have been in downtrend since September amid expectations the Federal Reserve will continue on its gradual path of monetary policy tightening. The central bank is widely expected to hike rates at its upcoming meeting on Dec. 12-13.

Gold prices are sensitive to moves higher in interest rates, which lift the opportunity cost of holding non-yielding assets such as bullion.

In other precious metal trade, rose 0.08% to $15.82 a troy ounce, while fell 1.27% to $883.15.

traded at $2.98, up 0.42% while rose by 0.62% to $2.78.

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Source: Investing.com

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