Gold fell to a two-month low on Wednesday afternoon in London after better-than-expected US jobs data raised speculation that the Federal Reserve would move forward with interest-rate rises.
– The spot gold price fell to its lowest since June 24 at $1,304.91 per ounce. It was last at $1,308.05/1,308.45, down $3.75 on the previous close. Meanwhile, the dollar index climbed to its highest in three weeks and was last at 96.10.
– US ADP non-farm payrolls – often seen as a precursor to Friday’s numbers – were a better-than-expected 177,000.
– Market participants are now awaiting Friday’s US jobs report, which could determine whether the US Federal Reserve will lift interest rates in the near term. The market expects August’s non-farm employment change at 186,000.
– Hawkish comments from Fed chair Janet Yellen and other central bank speakers last Friday have lifted expectations that it will raise rates this year. There is a 24-percent chance of an increase in September but most expect a rise only in December, according to the CME FedWatch tool.
(Editing by Mark Shaw)
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Source: Bullion Desk News
