Investing.com - Gold futures pushed forward on Monday as traders look ahead to the Federal Open Market Committee meeting later this week.
Gold futures for February delivery rose 0.30% to $1,252.20 a troy ounce on the Comex division of the New York Mercantile Exchange as of 5:23 AM ET (10:23 GMT).
Stagnant wage growth and inflation have increased concern over rate rises. Data on Friday showed that average hourly earnings were lower than expected, while the U.S. economy added 228,000 jobs in November. The unemployment rate held steady at 4.1% for a second consecutive month.
Gold fell to a four-month low on Friday after the release of the data. A stronger dollar also weighed on the commodity. Gold is sensitive to rising rates, which increase the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
Gold prices have been falling since September amid expectations the Federal Reserve will continue on its gradual path of monetary policy tightening. The central bank is widely expected to hike rates at its upcoming meeting on Dec. 12-13.
While an interest rate hike has been priced in, hawkish signals from Fed policymakers could cause the precious metal to sink lower.
Meanwhile investors are also looking to news of the tax reform bill, which Republican leaders are rushing to pass before Christmas. The increasing likelihood of it passing has driven the U.S. dollar up slightly, which in turn drags down on gold.
Elsewhere on the Comex, silver futures were up 0.42% to $15.89 a troy ounce. Among other precious metals, Platinum Futures surged 0.80% to $890.90, while Palladium Futures gained 0.68% to $1,003.20 an ounce.
Meanwhile, copper futures inched forward 0.22% to $2.985 a pound.
Add a Comment
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.