Gold Near 3 Week Low Before Fed and NFP

Gold held below a three-week high in New York as investors awaited U.S. data that may strengthen the dollar and boost the case for the Federal Reserve to slow stimulus. Silver declined.

The Bloomberg Dollar Spot Index, a measure against 10 major currencies, traded near an almost four-month high before the U.S. central bank releases minutes of its December meeting. The ADP Research Institute may say today that private payrolls in the U.S. rose by 200,000 workers last month, according to the median estimate of economists compiled by Bloomberg.

The Federal Open Market Committee decided at the Dec. 17-18 meeting to cut monthly bond purchases to $75 billion from $85 billion starting this month, and San Francisco Fed President John Williams said yesterday the program may end this year. Bullion slid 28 percent last year, the most since 1981, as some investors lost faith in the metal as a store of value. Prices rose as much as 5.6 percent since setting a six-month low on Dec. 31, partly as physical demand increased in China.

via Bloomberg

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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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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