Yahoo Finance Gold Prices Hit Fresh 2-Month Lows as Dollar Strengthens
Investing.com - Gold prices dropped to fresh two-month lows on Friday, as the U.S. dollar rallied following the release of a mixed U.S. employment report that included an encouraging rise in wages.
Comex gold futures were down $4.86, or about 0.38%, at $1,268.44 a troy ounce by 09:05 a.m. ET (13:05 GMT), the lowest since August 9.
Investors' confidence in the U.S. economy remained strong after the U.S. Department of Labor reported that the economy unexpectedly destroyed jobs last month, but that the unemployment rate declined and income rose more than anticipated.
Markets seemed to solely focus on wage growth, which is being closely monitored by the Federal Reserve for evidence of diminishing slack in the labor market and upward pressure on inflation.
The dollar was already broadly supported by hopes for an upcoming tax overhaul after the U.S. House of Representatives on Thursday approved a 2018 spending bill, which was seen as an important step to advance an eventual tax reform plan.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.14% at 93.91, just off a 10-week high of 94.09 hit earlier in the session.
Gold is sensitive to moves in both U.S. rates and the dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Elsewhere on the Comex, silver futures fell 0.22% to $16.60 a troy ounce.
Related Articles
Crude Oil Prices Continue to Decline, U.S. Oil Facilities Close for Nate
Gold Prices Hit Fresh 2-Month Lows as Dollar Strengthens
Oil set to end multi-week bull run as oversupply concerns resurface
