Investing.com - Gold prices were lower on Monday as the greenback continued to rise on expectations of a Federal Reserve rate increase in December.
Comex gold futures for December delivery fell 1.27% to $1,190.30 a troy ounce as of 10:05 AM ET (14:05 GMT),.
The precious metal was pushed lower after the jobs report on Friday increased expectations that the Fed will raise rates.
The U.S. economy created less jobs than expected in September, but unemployment reached a 48-year low, indicating the economy was at full-employment.
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 0.23% to 95.53.
The bond market was closed in observance of Columbus day but the United States 10-Year note reached its highest level seen since 2011 on Friday after the jobs numbers.
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 falling 2.11% to $14.340 a troy ounce. Among other precious metals, Platinum Futures decreased 0.69% to $818.80 while Palladium Futures were down 0.23% to $1,054.70 an ounce. Copper futures rose 0.22% to $2.771 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.