Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Commodities  >  Gold       XAUUSD

GOLD

SummaryQuotesChartsNews 
News SummaryAll newsMarketScreener Strategies

Gold Heads for Worst Day in a Year After Jobs Report

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/05/2019 | 10:45am EDT

By Amrith Ramkumar

Gold prices slid Friday following an upbeat June jobs report, heading toward their largest one-day decline in more than a year as traders dialed back bets that the Federal Reserve will lower interest rates.

Gold for August delivery, the most-active futures contract, fell 2.1% to $1,391.40 a troy ounce on the Comex division of the New York Mercantile Exchange and was on pace for its worst day since June 2018. The reversal came after anticipation that the Fed will aggressively cut rates later this year had pushed the safe-haven metal to roughly six-year highs earlier in the week.

But some of the bets on easing monetary policy were unwound Friday after figures showed the U.S. added more jobs than expected last month, pushing up Treasury yields and the dollar. That was a negative for gold because higher yields make the metal less attractive to yield-seeking investors and a stronger dollar makes it more expensive for overseas buyers.

The WSJ Dollar Index, which tracks the U.S. currency against a basket of 16 others, rebounded 0.6%. The yield on the benchmark 10-year U.S. Treasury note surged to 2.058%, according to Tradeweb, from 1.952% a session earlier. Bond yields rise as prices fall. Their slide to multiyear lows recently has driven gold higher.

Despite Friday's market reaction, some analysts still expect the Fed to lower interest rates amid heightened trade uncertainty and other signs of slowing economic activity. Contained wage growth and muted inflation have also prompted bets on lower interest rates, potentially boosting gold moving forward.

Investors will weigh minutes from the Fed's last meeting and fresh inflation data next week to gauge the trajectory of the U.S. economy and interest-rate policy.

Elsewhere in commodities, U.S. crude-oil futures swung between small gains and losses and were recently up 0.3% at $57.50 a barrel on the New York Mercantile Exchange. Brent crude, the global price gauge, added 1.5% to $64.23.

Natural-gas futures rebounded 4.4% to $2.390 a million British thermal units, boosted by a bout of warm weather that is expected to lift demand as more people turn on their air conditioners.

Stocks mentioned in the article
ChangeLast1st jan.
GOLD -0.09% 1491.5 Delayed Quote.16.22%
US DOLLAR INDEX -0.40% 97.61 End-of-day quote.0.96%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on GOLD
06:26aINTL FCStone sees more growth in precious metals after third quarter record v..
RE
05:29aChina Shenhua's Coal Sales, Production Fell in September
DJ
05:02aCoal to play significant role in South Africa power mix - minister
RE
04:09aGold dips on profit-taking, trade uncertainties cap losses
RE
10/17MARKET SNAPSHOT: S&P 500 Ends Within 1% Of All-time High Amid Brexit Draft De..
DJ
10/17U.S. Manufacturing Production Declined in September
DJ
10/17Barrick misses quarterly gold output estimates on Tanzania curbs
RE
10/16Natural-Gas Prices Fall on Supply Worries
DJ
10/16BHP 1Q Output Down on Maintenance Work -- Update
DJ
10/16Natural-Gas Prices Fall on Supply Worries
DJ
More news
Chart GOLD
Duration : Period :
Gold Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GOLD
Short TermMid-TermLong Term
TrendsBullishBullishNeutral