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Gold Prices Unchanged as Dollar Rises Slightly Ahead of U.S. Job Data

Published 10/05/2018, 01:54 AM
© Reuters.  Gold prices were unchanged on Friday
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Investing.com - Gold prices were unchanged on Friday while the dollar firmed as investors remained cautious ahead of the much-anticipated U.S. job data due later in the day.

Gold futures for December delivery on the Comex division of the New York Mercantile Exchange was unchanged at $1,201.60 a troy ounce by 1:40AM ET (05:40 GMT).

The gain in dollar followed a spike in Treasury yields on better-than-expected U.S. data and indications from the Federal Reserve that interest rates will continue to rise.

The U.S. dollar index, which tracks the greenback against a basket of other currencies, was at 95.50 by 01:30AM ET (05:30 GMT) after hitting an overnight high of 95.78, the most since August 20.

The yield on the benchmark United States 10-Year rose to levels not seen since 2011 after upbeat economic data and hawkish comments from Fed Chairman Jerome Powell bolstered expectations of an interest rate increase in December.

The yield was up 1.36% to 3.204% on Thursday after jumping almost 4% in the previous session.

Higher interest rates increase bond yields, making non-interest bearing gold less attractive to investors. They also tend to boost the dollar, making dollar-priced gold more expensive for holders of other currencies.

In other news, Gold-backed exchange-traded funds (ETFs) experienced outflows in North America European and Asian funds during September, as investors continued to show extreme short positioning, the World Gold Council said on Thursday.

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