Gold prices down in Asia as investors more assured of Fed rate hike
Published Dec 06, 2015 06:22PM ET
Gold prices dip in Asia
Investing.com - Gold prices dipped in Asia on Monday with little regional data to drive sentiment and investors now more assured of a Federal Reserve rate hike this month after U.S> jobs data last week.
Gold for February delivery on the Comex division of the New York Mercantile Exchange fell 0.123% to $1,084.40 a troy ounce.
Also on the Comex, silver futures for March delivery dipped 0.21% to $14.500, while copper futures eased 0.21% to $2.072 a pound.
In the week ahead, investors will be looking ahead to Friday’s U.S. data on retail sales and inflation for fresh indications on the strength of the economy. Markets will also be watching a raft of Chinese economic data, including a report on the trade balance as well as data on consumer price inflation.
On Monday, Bank of England Governor Mark Carney is to testify before the European Parliament Committee on Economic and Monetary Affairs, in Brussels.
Last week, gold prices soared more than $20 to hit a three-week high on Friday, despite data showing the U.S. economy created more jobs than expected in November.
The Labor Department reported that the U.S. economy added 211,000 jobs last month, beating expectations for 200,000. The unemployment rate held steady at 5.0%, matching forecasts.
The robust data solidified expectations that the Federal Reserve will hike interest rates for the first time since 2006 at its upcoming meeting on December 15-16. Investors widely expect the central bank to raise rates later this month, but anticipate the pace of increases to be gradual, boosting gold.
Market players also reacted to OPEC's decision on Friday to leave its production ceiling unchanged at a contentious meeting in Vienna. As a result, crude prices are expected to remain stubbornly low amid a glut of oversupply on global energy markets.
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Written By: Investing.com
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