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Gold drifts below $4,000 as investors await US jobs data - YAHOO FINANCE
Gold (GC=F)
Gold prices were mixed against a stronger dollar as markets waited for US private payroll data for clues as to the Federal Reserve's interest rate path.
Gold futures rose 0.9% to $3,995.00 per ounce, while spot gold lost 0.4% to $3,981.70 an ounce, at the time of writing.
The US dollar index (DX-Y.NYB), which tracks the greenback against a basket of six major currencies, was at a three-month high of 100.13. A stronger dollar The dollar makes gold more expensive for investors.
"With the dollar making new highs, we're seeing that having a weight on the gold market ... some of this recent strength in dollar and the weight in the gold market comes from the less likelihood of a potential (Fed) rate cut in December," David Meger, director of metals trading at High Ridge Futures, told Reuters.
With the US government undergoing its longest shutdown in history, there are no official statistical figures being released, forcing markets to rely on private economic reports such as the ADP National Employment Report due later today.
The US Federal Reserve cut interest rates last week and chair Jerome Powell signalled it might be the last reduction in borrowing costs for the year.
Market participants now see a 69% chance of a rate cut in December, down from over 90% prior to Powell's remarks, per CME's FedWatch Tool.
"Gold is losing some froth while still pricing in concerns over Fed independence and the possibility of stagflation as well as underlying geopolitical risk and international tensions. Some of the froth has been blown off in a much-needed correction," Rhona O'Connell, an analyst at StoneX, said in a note.
Non-yielding gold thrives in a low interest rate environment and during times of economic uncertainty.
