Gold futures rose to the highest level in a month on Monday, rising for a third straight session on speculations the Federal Reserve will slow down further cuts to its bond purchases after the US payrolls came in lower than forecasted.
Gold deliveries for February rose 0.17% higher to $1,249.10 an ounce at the time of writing on New York’s Comex, while silver futures dropped 0.42% to $20.140 an ounce. At the same time platinum climbed 0.4% to $1.442.21 an ounce. Prices for the metal were also driven by the weakened US dollar, while the US dollar index declined 0.10% lower to 80.63 points at the time of writing.
Spot gold rose for a third week, the longest since August, while jobs in the US increased by 74,000 in December, below forecasts of a 197,000 rise.
The net-long position for the yellow metal increased by 18% to 40,229 futures and options in the week ended Jan; US Commodity Futures Trading Commission data reveled.
Gold – Fed Tapering
In the US, the non-farm payroll data that was released on Friday showed that jobs were increased by 74,000 in December, below forecasts of a 197,000 rise and dropping from the revised 241,000 positions added in November.
The report also showed that the world’s largest economy’s unemployment rate dropped 6.7%, dropping from November’s record of 7% and the lowest since Oct 2008.
Traders are predicting the Fed officials to delay the expected further-reduction in the banks stimulus due to the recent macroeconomic data. Last month, the Federal Reserve (Fed) announced it will begin to reduce its $85 billion monthly bond purchases by $10 billion.
Visit www.hymarkets.com to find out more about our products and start trading today with only $50 using the latest trading technology today.
The post Gold Extend Gains to One-Month High on Fed-Taper Speculation appeared first on | HY Markets Official blog.
Article provided by HY Markets Forex Blog
