Gold books worst daily, weekly slide in about 7 weeks as dollar, 10-year Treasury rates climb

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Gold futures on Friday capped a downbeat week with the worst daily fall since mid June, marking the sharpest weekly drop in two months, after the U.S. monthly jobs report for July came in better than expected, delivering a further jolt to the U.S. dollar and bond yields and undercutting demand for precious metals. Trading in bullion came as a monthly Labor Department report for July showed that the U.S. economy added 943,000 jobs. Economists had forecast 845,000 jobs last month. Meanwhile, the unemployment rate dropped to 5.4%, below the estimate of 5.7% and falling below 5.9% rate for June. December gold
GCZ21,
-2.42%
closed $45.80, or 2.5%, lower at $1,763.10 an ounce and booked a weekly decline of 2.97%, representing the sharpest such decline since the period ended June 18. Bullion, all week, had been pressured by an uptick in the U.S. dollar, which has risen 0.7% so far, as measured by the ICE U.S. Dollar Index
DXY,
+0.59%,
a weighted gauge of the buck against a half-dozen currencies. The 10-year Treasury note yield
TMUBMUSD10Y,
1.290%,
meanwhile, was up around 1.30% from 1.21% on Thursday. A strong dollar and buoyant yields can dimish appetite for assets priced in bucks that don’t offer a coupon.

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