Investing.com – Gold prices pared loss to trade above break even on Friday following a surge in the dollar after data showed economic growth remained robust in the third quarter pointing to underlying strength in the U.S. economy.
for December delivery on the Comex division of the New York Mercantile Exchange rose by $2.91, or 0.24%, to $1,272.52 a troy ounce.
increased at a 3.0% annual rate in the July-September period, the Commerce Department said in its initial estimate on Friday. That was above economists’ estimates for growth of 2.5%.
The upbeat growth sparked a surge in both the dollar and U.S. treasury yields which limited gains in gold prices amid ongoing speculation concerning President Donald Trump’s choice of candidate for the Fed’s top post.
President Donald Trump is leaning toward appointing Federal Reserve Governor Jerome Powell to be next chairman of the Fed, Politico reported Thursday, citing a source.
Gold is sensitive to moves higher in both bond yields and the U.S. dollar – A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion.
Gold prices are on track for a second-straight week of losses amid growing optimism that upbeat economic data could persuade the Fed to adopt a more aggressive monetary policy outlook.
“U.S. economic news flow has markedly firmed relative to forecasts since mid-June, opening the door for an upside surprise that stokes tightening bets further and compounds pressure on the yellow metal,” said Ilya Spivak, commodities and currency strategist with Daily FX.
In other precious metal trade, fell 0.21% to $16.78 a troy ounce while lost 0.79% to $914.80.
traded at $3.10, down 2.41% while fell by 2.93% to $2.82.
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Source: Investing.com