Retail

Gold Prices Rise as Dollar Falls


© Reuters. Gold rose on Friday.

Investing.com – Gold prices were higher on Friday as the U.S. dollar inched down, despite a better-than-expected jobs report.

Comex for December delivery rose 0.11% to $1,237.40 a troy ounce as of 10:33 AM ET (14:33 GMT).

Gold was higher due to a fall in the greenback. The , which measures the greenback’s strength against a basket of six major currencies, inched down 0.06% to 96.22.

The dollar was down despite nonfarm payrolls rising by 250,000 in October, higher than the consensus forecast. The jobless rate was also steady, while average hourly earnings advanced 0.2%, as expected.

The positive report supports the case for the Federal Reserve to increase interest rates in December, which is likely to put pressure on gold. Chances of a December rate hike are priced in at , according to Investing.com’s Fed Rate Monitor Tool.

The precious metal usually falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves in the dollar. Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.

Interest rate increases dampen appeal for gold, while boosting the dollar.

Meanwhile, trade tensions were back in focus after U.S. President Donald Trump and Chinese President Xi Jinping spoke on the phone regarding trade on Thursday, boosting sentiment that a trade deal will be reached when the two meet at G-20 summit later this month.

Other metals were higher on the Comex, with rising 4.65% to $14.890 a troy ounce. Among other precious metals, increased 1.29% to $873.90, while surged 1.76% to $1,100.40 an ounce. futures jumped 3.18% to $2.808 a pound.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.