Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Gold Prices Rise as Dollar Falls After Jobs Report

Published 10/05/2018, 10:21 AM
Updated 10/05/2018, 10:21 AM
Gold prices rose on Friday.

Investing.com - Gold prices rose on Friday as the greenback pared back earlier gains after September’s payroll numbers came in lower than expected.

Comex gold futures for December delivery rose 0.52% to $1,207.80 a troy ounce as of 10:20 AM ET (14:20 GMT),.

The U.S. economy created fewer jobs than expected in September, but unemployment reached a 48-year low, indicating the economy was nearing full employment.

The disappointing payrolls numbers pushed the dollar lower, despite increased expectations of a Federal Reserve rate hike in December.

Gold 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.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, increased 0.16% to 94.95. The yield on the benchmark United States 10-Year Treasury note jumped to 3.227%, a level not seen since 2011, but soon leveled back to 3.208%.

Higher interest rates increase bond yields, making non-interest bearing gold less attractive to investors. They also tend to boost the dollar, making dollar-priced gold more expensive for holders of other currencies.

Other metals were lower on the Comex, with silver futures rising 0.55% to $14.670 a troy ounce. Among other precious metals, platinum futures rose 0.22% to $826.30, while palladium futures increased 1.46% to $1,060.80 an ounce. Copper futures lost 0.34% to $2.768 a pound.

Latest comments

expected gold fall again
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.