US Congress delegation visits North Sinai: Armed Forces    Egypt's Ismaily sign Tunisian striker Fakhreddine Ben Youssef    Egypt may add Indian wheat to list of acceptable import origins    New Lebanese government must put forward clear economic programme: Banking association    Masked gunmen kill local commander of Iran's security forces    Lebanon Aoun tells government must restore trust, make up for lost time    Lebanon forms government with backing of Hezbollah and allies    Senate approves Trump impeachment trial plan, rejects Democrats on documents, witnesses    New draft customs law finalised, waiting parliament green light: Egyptian Customs Authority chairman    Egypt in a group with Gabon, Libya, Angola in 2022 World Cup qualifiers    Palm Springs Film Festival announces 31st edition's winners    China stocks edge higher as investors weigh concerns over coronavirus    Palm Hills, AUB sign EGP 505m credit facility to refinance existing debt    Israeli electric company ends power cuts to West Bank after Palestinians pay debt    World Bank provide finances for 450,000 small projects in Egypt: minister    Talks about talks    Egypt to play Angola for group leadership in African Men's Handball Championship quarter-finals    Factbox: Major severe coronavirus outbreaks in the past 20 years    Not all low-carb, low-fat diets help you live longer    Sunscreen ingredients really do seep into the blood. Is that bad?    50th WEF kicks off with huge international participation    Afrah Alqobaplay is the newest of the Youth Theatre Companyat The Floating Theatre    Genesis    Don't miss Egypt's 1st International Arts Forum at El-Sawy Culturewheel    UK, Egypt agree to enhance joint economic partnership    Elias Fakhfakh tasked to form Tunisia's new government    Al-Sisi orders additional social protection programmes for low-income: MP    Italy former honorary consul sentenced to 15 years jailtime for smuggling artefacts    B-Electric to construct solar power plant in Zafarana    Egypt's Health Ministry on alert after Chinese coronavirus outbreak    Maspero triangle's towers will be up and standing in 30 months: NUCA    LIVE: 2022 World Cup qualifiers draw for Africa    TMG to sponsor 5 Egyptian athletes qualified to Tokyo Olympics 2020    New Club World Cup threatens soccer ecosystem: La Liga chief    European stocks fall on China virus concerns as world leaders gather in Davos    Initiative for visually impaired Egyptians to receive art education    Google celebrates 106th birthday of Egyptian lawyer Moufida Abdel Rahman    Egypt's Sisi extends state of emergency for 3 months    Madbouly chairs SCNW meeting on GERD's upcoming technical, legal discussions    Harry, Meghan drop their royal titles repay £2.4 mln    Parliamentary elections to be held in November: Baha Abu Shoqa    ‘Djamila Bouhired' movie star Magda al-Sabahi dies at 89    Egypt is best tourism destination for 2020 according to BBC    Mission Africa continues    NBE studies establishment of rowing club in Cairo    Egypt's Zamalek, Smouha presidents hit with disciplinary sanctions by EFA    Egypt's President Sisi pardons some prisoners on 25 Jan. Revolution anniversary    Egypt's Sami Anan released after near two-year detention    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

Gold drops 1% after robust U.S. jobs data
Published in Amwal Al Ghad on 07 - 12 - 2019

Gold fell one percent on Friday as strong U.S. jobs data renewed bets the Federal Reserve would hold pat on interest rates and boosted demand for riskier assets, while supply-squeezed palladium soared to a new record high.
U.S. job growth increased by the most in 10 months in November, confirming that the economy remained on a moderate expansion path despite a prolonged manufacturing slump.
Spot gold slipped 1 percent to $1,461.01 per ounce. U.S. gold futures settled down 1.1 percent at $1,465.1 per ounce.
"The better-than-expected jobs report has dented demand for safe-haven products such as gold," said David Meger, director of metals trading at High Ridge Futures.
The jobs data pushed up the dollar, while U.S. stock index futures jumped as the positive economic readings added to an upbeat mood after U.S. President Donald Trump said trade talks with China were "moving right along".
In a positive gesture, China said it will waive import tariffs for some soybeans and pork shipments from the United States. Looking ahead, the market focus will be on the Fed's meeting on Tuesday and Wednesday next week. The U.S. central bank is expected to keep interest rates on hold at 1.50 percent to 1.75 percent.
"The (jobs) report falls squarely to the camp of the U.S. monetary policy hawks who do not want to see interest rates rise anytime soon, and that is bearish for the metals market," said Kitco Metals senior analyst Jim Wyckoff.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar.
"On the technical side, a close below the $1,460-65 area could open gold up to the $1,445-47 November lows, and beyond that towards $1,400-$1,420 congestion area over the summer," said Tai Wong, head of base and precious metals derivatives trading at BMO.
Elsewhere, autocatalyst metal palladium continued scaling fresh peaks, hitting $1,880.37 for the first time.
"The demand for palladium is typically steady and practically price-inelastic, so it could be on its way to the $1,900 mark. The strong jobs numbers are helping the metal since jobs growth indicates a healthy economy and translates into more people buying cars," BMO's Wong said.
Other metals latched onto gold's slide as well, with silver falling 2 percent to $16.60 per ounce, having earlier touched a low since August 7 at $16.51. Platinum fell 0.4 percent to $893.25.
Source: Reuters

Clic here to read the story from its source.