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TPP Leaders Say Agreement is Close But Won’t Commit to Date

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Gold fell in New York, after rising the most in more than four months, on expectations that U.S. borrowing costs will increase as the economy strengthens.

Bullion rose 2.4 percent on Nov. 7, the most since June 19, as a report showed U.S. employers added 214,000 workers in October, missing the 235,000 gain expected by economists. The Bloomberg Dollar Spot Index fell from a five-year high after the data. The increase in hiring last month followed a 256,000 advance that was larger than first estimated.

Gold had slipped to a four-year low before the employment data as the stronger dollar and expectations that the Federal Reserve will raise interest rates as the economy improves cut demand for a haven. Investors are holding the least through bullion-backed funds since 2009 and hedge funds and other money managers have reduced bullish wagers.

“Everyone was looking for better figures to cement the concept of the U.S. economy powering ahead,” David Govett, head of precious metals at Marex Spectron Group in London, said in a note. “The dollar was also overly long and it dropped away as well, which added fuel to the fire. The market will remain under pressure as long as the dollar stays relatively strong and the U.S. economy continues its upward trajectory.”

via Mainichi

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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

@alfonso_forex

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