Yahoo Finance Gold Prices Down In Asia As Market Looks Ahead To US Nonfarm Payrolls
Investing.com - Gold prices dipped in Asia on Friday as investors awaited nonfarm payrolls in the U.S. even thought he data will likely be widely skewed by the effects of hurricanes in Texas and Florida.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange dipped 0.13% to $1,271.51 a troy ounce.
Overnight, gold prices traded below breakeven on Thursday, as a raft of better-than expected economic data pointed to solid U.S. economic growth underpinning a move higher in the dollar.
An uptick in the dollar on signs that the U.S. economy is strengthening pressured gold prices which were on track for a fourth weekly loss ahead of a nonfarm payrolls due Friday.
The U.S. Department of Labor reported Thursday that initial jobless claims fell 12,000 to a seasonally adjusted 60,000 for the week ended Sept. 30, beating forecasts of a 7,000 decline.
The trade deficit — which measures the gap between what the United States imports and what it exports — narrowed to $42.4 billion in August, down $1.2 billion from July. Exports in the August were $195.3 billion, while imports came to $237.7 billion.
The duo of reports come ahead of a nonfarm payrolls update due Friday, expected to show the U.S. economy created 90,000 jobs in September.
“Gold’s bearish tones are largely due to the tightening of monetary policy,” said Adrienne Murphy, chief market analyst at AvaTrade. “A rise in the cost of borrowing, as well as tackling the balance sheet, will put a huge strain on the price of the precious metal.”
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.
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