Gold rose, erasing Friday’s decline, as oil extended a fall and an investigation into Nvidia Corp.’s chief executive officer weighed on technology stocks.
Gold held a late-week retreat after strong US jobs data reinforced expectations the Federal Reserve will seek to raise interest rates to combat inflation. Bullion was trading around $4,070 an ounce, after falling 0.4% on Friday. US job growth surged in October and the unemployment rate edged lower, signs of labor-market strength in an expanding economy. Separate data showed US consumer sentiment rose in early November to a three-month high. Fed officials will see one more jobs report and a full slate of inflation data before their next meeting in December, where they are expected to hike rates as stubbornly high energy prices weigh on prices. Tighter monetary policy is a headwind for gold, which doesn’t pay interest. The precious metal rebounded above the $4,000-an-ounce support threshold after the US midterm elections, as Treasury yields and oil fell on bets that incoming Democrats would push to end the Iran war and a divided government would limit further spending and borrowing. It’s still down about a fifth since the US-Iran conflict erupted in late February.
"Gold’s post-midterm rollercoaster has brought its two competing forces into sharp focus: its safe-haven appeal remains intact, but the dollar continues to keep a tight lid on its upside," said Hebe Chen, market analyst at Vantage Global Prime. Traders will look to monthly consumer price index data due Tuesday for the next clues on the path for interest rates. "The CPI report will be the next battleground, testing whether safe-haven demand can muster enough firepower to break through the dollar-driven ceiling," Chen said. Spot gold slipped 0.1% to $4,065.58 an ounce at 7:35 a.m. in Singapore, while silver fell 0.2% to $51.81. Platinum and palladium edged higher. The Bloomberg Dollar Spot Index, a gauge of the US currency, rose 0.4% in the previous session.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing