Metal Prices Rise on Dollar Weakness; Gold Set to Snap 3-Week Losing Streak

Investing.com – Gold prices fell Friday, but remained on track to snap a three-week losing streak amid dollar weakness, which also drew a strong rebound in the price of other metals.

for August delivery on the Comex division of the New York Mercantile Exchange fell by $3.00, or 0.23%, to $1,255.90 a troy ounce.

The dollar was set for a weekly slump as a mixed U.S. jobs report dampened investor expectations for a faster pace of rate hikes.

The U.S. economy added 213,000 jobs in June, above , while the unemployment rate , and grew 0.2%, undershooting economists’ forecast for a 0.3% increase.

“The softer average earnings indicator is likely to catch more attention as it highlights a still tame wage inflation environment,” said Audrey Childe-Freeman, chief strategist at consultants FX Knowledge. “That could lead some market participants to start questioning whether we will see two Fed rate rises in second after all.”

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.34% to 93.81.

Dollar-denominated assets such as gold are sensitive to moves in the dollar. A fall in the dollar makes gold cheaper for holders of foreign currency and increases demand for the precious metal.

In other metals trade, market participants appeared to take profits on their bearish bets on metal prices, which rebounded from multi-month lows. Some said that the impact of U.S. and China trade tariffs on markets – which kicked in on Friday – had been priced in.

, which sunk to their lowest in more than one year Thursday, fell 0.25% to $2.82, and rose 1.99% to 2,748.75.

rose 0.31% to 2,087.45 amid investor expectations for a decline in output following a statement from China earlier this week pledging to shut down some smelters in bid to firm up environment control.

fell 0.17%% to $16.06 a troy ounce, while rose 0.70% to $874.30.

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