Gold declined with silver today behind the strengthening of the US dollar due to incoming data that could end up strengthening the case for earlier interest rate hikes in the country.
Spot gold dropped to a price per ounce as low as $1,257.36 after shedding off 0.3% of its value. It was trading mid morning Singapore time at $1,260.01 according to generic pricing by Bloomberg. The precious metal is on track to record a losing week after the European Central Bank (ECB) surprisingly further cut interest rates in the region.
Expected to be released today is a report on the US labor market which is forecast to show that at least 200,000 new jobs were created during the month of August making it the seventh straight month of such an improvement. Separate data from yesterday indicated that the US’ service industry grew at nine year high pace.
Analyst Lachlan Shaw from the Commonwealth Bank of Australia says that, “Gold fell after the dollar lifted following the ECB’s decision to cut rates and start buying assets again, reducing the appeal of the precious metal as an alternative asset.” The ECB said yesterday that it would start to purchase asset backed securities as part of its plan to boost growth in the eurozone.
Futures for gold with a delivery date in December declined to a price per ounce as low as $1,258 after dropping 0.7% to achieve its lowest value since June 7th. It recovered enough to trade at $1,260.50 in New York’s Comex. Meanwhile, the SPDR Gold Trust’s holdings continued to shrink for the fourth consecutive day yesterday to extend its long losing streak this year.
Spot silver fell as well to the lowest since June 10th of $19.006 before bouncing back to trade at $19.0566. The metal is set to record a decrease for the week.
Both platinum and palladium for immediate delivery are likewise headed towards a losing week with prices per ounce at $1,404.75 and $887.50 respectively.
The material has been provided by InstaForex Company – www.instaforex.com
Gold declined with silver today behind the strengthening of the US dollar due to incoming data that could end up strengthening the case for earlier interest rate hikes in the country.
Spot gold dropped to a price per ounce as low as $1,257.36 after shedding off 0.3% of its value. It was trading mid morning Singapore time at $1,260.01 according to generic pricing by Bloomberg. The precious metal is on track to record a losing week after the European Central Bank (ECB) surprisingly further cut interest rates in the region.
Expected to be released today is a report on the US labor market which is forecast to show that at least 200,000 new jobs were created during the month of August making it the seventh straight month of such an improvement. Separate data from yesterday indicated that the US’ service industry grew at nine year high pace.
Analyst Lachlan Shaw from the Commonwealth Bank of Australia says that, “Gold fell after the dollar lifted following the ECB’s decision to cut rates and start buying assets again, reducing the appeal of the precious metal as an alternative asset.” The ECB said yesterday that it would start to purchase asset backed securities as part of its plan to boost growth in the eurozone.
Futures for gold with a delivery date in December declined to a price per ounce as low as $1,258 after dropping 0.7% to achieve its lowest value since June 7th. It recovered enough to trade at $1,260.50 in New York’s Comex. Meanwhile, the SPDR Gold Trust’s holdings continued to shrink for the fourth consecutive day yesterday to extend its long losing streak this year.
Spot silver fell as well to the lowest since June 10th of $19.006 before bouncing back to trade at $19.0566. The metal is set to record a decrease for the week.
Both platinum and palladium for immediate delivery are likewise headed towards a losing week with prices per ounce at $1,404.75 and $887.50 respectively.
The material has been provided by InstaForex Company – www.instaforex.com
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