Gold near 11-week low on US jobs report, rate outlook

Gold was trading near a 11-week low on Monday, retaining losses from a three-day losing streak, as a strong U.S. jobs report boosted expectations for a U.S. interest rate hike in September.


  • Spot gold was little changed at $1,171.76 an ounce by 0014 GMT.
  • The metal had fallen to $1,162.35 on Friday, its lowest since March 19, after data showed U.S. job growth accelerated sharply in May and wages picked up. Nonfarm payrolls increased 280,000 last month, the largest gain since December.
  • The report, indicating signs of strong momentum in the U.S. economy, bolstered expectations the Federal Reserve will begin to raise rates in September.
  • The dollar rallied to a 13-year peak against the yen and rose sharply against the euro on Friday after the robust jobs data.
  • Higher U.S. rates could diminish demand for non-interest-paying bullion, while a stronger dollar makes gold more expensive for holders of other currencies and reduces the metal’s safe-haven appeal.
  • SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.17 percent to 708.70 tons on Friday – their lowest since mid January.
  • Hedge funds and money managers cut net long positions in gold and silver during the week ended June 2, U.S. Commodity Futures Trading Commission data showed on Friday.
  • South Africa should review a preferential tax enjoyed by gold producers, a commission set up to look into taxes in Africa’s most advanced economy said in a report.
  • South Africa’s Association of Mineworkers and Construction Union will launch a wildcat strike if its rival union and gold mining companies impose a wage deal on its members, its president said on Sunday.


Benchmark 10-year U.S. Treasury yields posted their steepest weekly jump in nearly two years on Friday after the jobs report.
COMEX gold and silver contracts show the most active months

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