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
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Alfonso Esparza
Latest posts by Alfonso Esparza (see all)
- Dollar Rebounds with Market Focused on Apple’s Event - 03/24/2019
- Oil Lower on Dollar Rebound - 03/24/2019
- Gold Opens Flat Ahead of Busy Week - 03/24/2019