Yahoo Finance Gold Prices Slip Near 2-Month Lows ahead of NFP Report
Investing.com - Gold prices slipped near two-month lows on Friday, as demand for the U.S. dollar strengthened amid rising optimism over the outlook for the economy and as traders awaited a key U.S. jobs report due later in the day.
Comex gold futures were down $2.22, or about 0.17%, at $1,270.98 a troy ounce by 03:20 a.m. ET (07:20 GMT), just off Thursday's two-month low of $1,268.50.
Investors' confidence in the U.S. economy was boosted after the Department of Labor reported on Thursday that initial jobless claims fell more than expected to 260,000 last week.
Additional reports showed that the U.S. trade deficit narrowed in August, as exports climbed to a two-and-a-half year high, while factory orders increased more than analysts had projected.
The dollar also strengthened after the U.S. House of Representatives approved a 2018 spending bill, which was seen as an important step to advance an eventual tax reform plan.
Hopes for higher U.S. interest rates also boosted the greenback after Philadelphia Federal Reserve Bank President Patrick Harker said on Thursday that he is still planning on one more rate hike this year and three next year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.16% at 93.92, its highest since August 17.
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.
Market participants were looking ahead to the monthly U.S. nonfarm payrolls report due later Friday, for further indications on the strength of the job market.
Elsewhere on the Comex, silver futures slipped 0.13% to $16.62 a troy ounce.
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