Yahoo Finance Gold Prices Gain Smartly in Asia As China Returns from Week-Long Break
Investing.com - Gold prices jumped in Asia on Monday with China back after a week-long break bringing some heft to the market even as Japan, South Korea and Taiwan are shut for holidays.
Gold futures for December delivery settled rose 0.88% to $1,286.13 a troy ounce on the Comex division of the New York Mercantile Exchange.
This week, Wednesday’s Fed minutes will be in focus for fresh indications on the timing of the next U.S. rate hike. Friday’s U.S. data on inflation and retail sales will also be in focus.
Markets will also be eyeing a speech by ECB head Mario Draghi for clues on when the central bank will shift away from its ultra-easy policy.
Last week, gold prices rebounded from two month lows on Friday as fresh concerns over tensions with North Korea pressured the dollar lower and bolstered safe haven demand for the precious metal.
The dollar fell following reports on Friday that North Korea is preparing to test a long-range missile, adding to fears over a potential conflict in the region.
The dollar earlier rose as higher than expected wage growth in the U.S. jobs report for September was seen as potentially boosting inflation.
The U.S. economy lost 33,000 jobs in September, the Labor Department reported, ending seven straight years of job growth. But the decline was driven by slower hiring due to the effects of Hurricanes Irma and Harvey.
The unemployment rate fell to 4.2%, the lowest since 2001 and average hourly earnings rose 2.9% from a year earlier.
The uptick in wage inflation bolstered expectations that the Federal Reserve will hike interest rates in December.
Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
A weaker dollar makes gold futures, which are denominated in the U.S. currency, cheaper for foreign buyers.
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