Gold pares Friday’s loss, but stronger jobs lift rate-hike bets
Gold recovered much of Friday’s early decline but remained down 0.3% at $4,074.36 an ounce at 1854 GMT on November 6, Reuters reports. It had earlier touched $4,033.29. The metal was still up 5.2% for the week at that observation. Stronger U.S. payrolls lifted the dollar and yields; CME pricing cited by Reuters put the chance of a December Fed hike at 81%, versus 72.8% before the report.
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Gold recovered much of Friday’s early decline but remained down 0.3% at $4,074.36 an ounce at 1854 GMT on November 6, Reuters reports. It had earlier touched $4,033.29. The metal was still up 5.2% for the week at that observation. Stronger U.S. payrolls lifted the dollar and yields; CME pricing cited by Reuters put the chance of a December Fed hike at 81%, versus 72.8% before the report.
Thesis: Reuters links the gold pullback to stronger payrolls, a rising dollar and yields, and firmer expectations for a December Fed hike.
Counter view: Limitation: gold had recovered much of its early decline and was still up for the week at the reported observation; lower prices encouraged Indian physical buying.
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