Gold steadied after a three-day losing streak on Monday as the dollar and stock markets fell, though prices stayed near 11-week lows after Friday’s strong U.S. jobs report fuelled speculation interest rates may rise in September.
Spot gold was flat at $1,171.70 an ounce at 1408 GMT, while U.S. gold futures for August delivery were up $3.50 at $1,171.60 an ounce.
The metal touched its lowest since March 19 at $1,162.35 on Friday after data showed U.S. job growth accelerated more than expected last month.
The jobs report bolstered expectations the Federal Reserve will begin to raise rates in September, which would increase the opportunity cost of non-interest-paying bullion.
“There is still potential for gold prices to continue dropping, but it will be dependent on how positive the U.S. data is,” Natixis analyst Bernard Dahdah said.
“Gold is not a yield-earning investment, and we know that it costs you money to hold it in large quantities,” he said. “All these incentives of yield-earning investments are really taking their toll on gold.”
via Reuters
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Alfonso Esparza
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.
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