Gold Prices Lower as Stronger Dollar Weighs

Investing.com – Gold prices fell on Monday as the stronger dollar weighed after Friday’s weaker-than-expected U.S. jobs report did little to alter expectations for further Federal Reserve rate hikes this year.

Comex were trading at $1,317.00 a troy ounce by 03:54 AM ET (08:54 AM GMT).

Prices of the precious metal were pressured lower as the dollar moved higher against a basket of the other major currencies.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.25% to 91.98, up from its January 2 trough of 91.47, which was the lowest level since September 20.

The U.S. economy in December, the Labor Department reported Friday, well below the 190,000 forecast by economists.

The dollar briefly slid to the day’s lows following the report before regaining ground.

The jobs data was seen as unlikely to alter investor expectations for a rate hike by the U.S. central bank at its March meeting. Fed officials have penciled in three rate increases this year and two in 2019.

Gold is highly sensitive to rising U.S. interest rates, as they increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.

Recent weakness in the dollar had supported gold prices by making the dollar-denominated metal cheaper for holders of other currencies.

Elsewhere in metals trading, was down 0.69% at $17.16 a troy ounce, while fell 0.41% to trade at $971.20 a troy ounce.

was up 0.88% to $1,091.70 a troy ounce, not far from Thursday’s record high of $1,101.30.

Palladium posted the strongest increase among precious metals in 2017, advancing 57% amid concerns over the supply outlook.

was little changed for the day at $3.230 a pound.

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 financial markets, it is one of the riskiest investment forms possible.