Yahoo Finance Gold Prices Set for 3-Week Losing Streak as Dollar Shrugs off Weak Jobs Data
Investing.com – Gold prices came under pressure amid dollar strength as a weaker-than expected jobs report failed to derail investor expectations for a year-end rate while a surge in the services sector lifted sentiment on riskier assets.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell by $7.98, or 0.62%, to $1270.13 a troy ounce.
Gold prices remained on track to post a three-week losing streak amid ongoing risk-on sentiment as service sector growth offset data pointing to labor market weakness.
ISM nonmanufacturing data for October showed an uptick to 60.1, beating expectations of 58.5. That was the highest reading for the service sector index since 2005.
The upbeat nonmanufacturing report raised investor expectations of bullish U.S. economic growth, spurring a rebound on the dollar, which pressured gold prices to sink to session lows.
The U.S. economy added 261,000 jobs in October, the Department of Labor said Friday, that missed economists’ estimates for 310,000 new jobs.
The jobless rate remained steady at 4.2% while average hourly earnings was sluggish with growth roughly flat for the month.
Analysts noted, however, that while weaker wage growth could weigh on markets it is unlikely to derail the Fed’s plan to raise rates in December,
“Flat wages doesn’t concern us too much,” analysts at Wells Fargo (NYSE:WFC) said. “We do think wage pressure could start to weigh on the markets next year in a tight labor market.”
Gold prices are sensitive to moves higher in interest rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
In other precious metal trade, silver futures fell 1.59% to $16.86 a troy ounce, while platinum futures fell 0.61% to $921.85.
Copper traded at $3.12, down 0.61% while natural gas rose by 1.98% to $2.99.
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Gold Prices Set for 3-Week Losing Streak as Dollar Shrugs off Weak Jobs Data
