Gold Eases after Market Digests China Rate Cut Surprise

Gold prices are now holding just slight gains in mid-morning trading Friday.

The yellow metal has come down from its early-morning highs that were scored in the immediate aftermath of a surprise interest rates cut by China. The resurgent U.S. dollar index late this week, which on Friday hit a two-month high, is prompting some selling interest in gold.

The competing asset class, world stock markets, are also in rally mode late this week, which is also a bearish outside force working against safe-haven gold. December Comex gold futures were last up $1.40 an ounce at $1,167.40.

via Kitco

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza