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Gold Lower as USD Boosted by Strong NFP

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Gold edged lower on Friday as the dollar rebounded ahead of an eagerly awaited U.S. non-farm payrolls report, but still looked set to snap a six-week losing streak.

On Thursday it rallied nearly 1 percent after monetary easing measures from the European Central Bank fell short of expectations, boosting the euro and sending the dollar to its lowest in a month.

Spot gold was down 0.1 percent at $1,061.31 an ounce by 1244 GMT. It was however on track for a 0.3 percent gain for the week.

“The ECB announcement disappointed expectations and the immediate reaction of the euro reflected that, aiding gold in dollar terms,” Mitsubishi Corp strategist Jonathan Butler said.

“But if the U.S. economic recovery is indeed continuing and we see a fairly healthy jobs number, the story remains intact for a December rate rise, which should mean some further strengthening of the dollar and some more downside for gold.”

via Reuters

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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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