Gold Recovers on Monday at start of US Employment Week

Gold futures recovered from overnight weakness Monday, largely moving inversely to the U.S. dollar as markets continue to digest comments from Federal Reserve officials at their weekend symposium in Jackson Hole and while waiting for a key report on the U.S. labor market at the end of the week.

As of 1:25 p.m. EDT, Comex December gold was $1.10 higher to $1,326.90 an ounce. December silver was up 11.5 cents to $18.86.

The euro recovered to $1.11843 from an earlier low of $1.11580.

The precious metal initially came under pressure at the start of Asia-Pacific trading, with the December contract sliding to a two-month low of $1,317.20 an ounce. Analysts at the time blamed this on U.S. dollar gains in the aftermath of hawkish comments from Fed Chair Janet Yellen and Vice Chair Stanley Fischer, hinting at a possible U.S. interest-rate hike, as last week was winding down.

December gold was confined to a narrower-than-normal range for the day of $11.10, perhaps in part because London trading was closed for a holiday and many U.S. traders were away from their desks for late-summer vacations. Eventually, the December contract clawed its way back into slightly positive territory.

via Kitco

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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