Investing.com – Gold prices turned higher on Monday, but gains were expected to remain limited as Friday’s strong U.S. employment data continued to support demand for the greenback.
Comex were up 0.15% at $1,339.20 a troy ounce by 08:15 a.m. ET (12:15 GMT), just off Friday’s nearly two-week lows of $1,330.10.
The greenback was boosted after the U.S. Department of Labor reported on Friday that the economy added in January, beating expectations for a 184,000 gain. The unemployment rate remained unchanged at 4.1% this month, in line with expectations.
The strong wage growth data fueled inflation expectations, and underlined the case for the Federal Reserve to raise interest rates at a faster pace this year.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.10% at 89.13.
Separately, Treasury yields continued to climb, with the benchmark 10-year note hovering near more than four years.
Recent chatter that the world’s leading central banks will start tightening monetary policy faster than previously thought has sparked a global bond market selloff this year, with yields in the U.S., Europe and Asia all spiking higher.
Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.
Elsewhere on the Comex, gained 0.51% to $17.79 a troy ounce.
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Source: Investing.com
