Gold Lower After Strong US Data Validates December Hike Expectations

Gold prices reversed gains Monday, as strong U.S. economic data bolstered the case for the Federal Reserve to raise interest rates in coming months.

Gold for December delivery was recently down 0.3% at $1,263.90 a troy ounce on the Comex division of the New York Mercantile Exchange. Prices were as high as $1,272.80 a troy ounce earlier in the session.



U.S. manufacturers started the last quarter of the year on a positive note in October, as output and new order growth hit one-year peaks, data from Markit showed Monday. The solid numbers helped to strengthen the view that the Fed has a clear path to raise interest rates before the end of the year.

via WSJ

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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