Forex Marketz Daily Forex News – Fully Markets Update
The price of gold tumbled Friday, and extended losses during this morning’s Asian trade session. The US dollar rose from multi-month lows after a better than expected non-farm payroll report crossed the wires Friday morning.
Spot gold (XAU/USD) shed 0.77 percent to $1,258.36 per ounce, this morning. This is near its lowest level since July 28 when gold traded near a low of $1,256.90 per ounce. The yellow bullion was near the flat line at $1,268.61 per ounce at the time of this report.
US gold futures, for December delivery, settled at $1,264.60 per ounce at the end of the Asian trade session.
The NFP report showed that employers added a better than expected 209,000 jobs in July. The US unemployment rate was 4.3 percent. Economists had expected the report to show job growth of 183,000 and the jobless rate to tick lower to 4.3 percent. This is the lowest unemployment rate since March 2001.
Non-Farm Payrolls do not Support Gold
The solid non-farm payroll report along with the drop of the unemployment rate to a joint 16 year low suggests the Federal Reserve will still need to raise rates again later this year. Even with weaker inflation plaguing the overall economic growth.
With geopolitical risks winding down, a bit, coupled with the Fed raising rates again this year, this will be too much pressure for the yellow metal. The price of the bullion is still expected to fall and possibly end the year close to $1,150 per ounce.
