Yahoo Finance Gold Prices Remain Higher amid Geopolitical Concerns
Investing.com - Gold prices remained higher on Friday, as fresh concerns over tensions between the U.S. and North Korea supported safe-haven demand, although the ongoing strength of the U.S. dollar was expected to limit the precious metal's gains.
Comex gold futures were up $8.69, or about 0.68%, at $1,283.52 a troy ounce by 08:30 a.m. ET (12:30 GMT).
Safe-haven demand strengthed following reports North Korea is preparing to test a long-range missile that it is believed could reach the west cost of the U.S.
But the U.S. dollar remained supported as the wage data from Friday's U.S. jobs report 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.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.10% at 93.53, still close to Friday's 10-week highs of 94.10.
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 advanced 0.85% to $16.93 a troy ounce.
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