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Gold slips to over 4-month low on early Fed tapering fears
Gold slipped to a more than four-month low on Monday as solid U.S. jobs data stoked concerns of a sooner-than-expected interest rate hike, which could increase the opportunity cost of holding non-interest bearing bullion. Gold is trading at 4-month lows, and seeing a follow through selling after putting in worst week in 2 months.
Gold slipped to a more than four-month low on Monday as solid U.S. jobs data stoked concerns of a sooner-than-expected interest rate hike, which could increase the opportunity cost of holding non-interest bearing bullion.
Gold is trading at 4 month lows, and seeing a follow through selling after putting in worst week in 2 months.
The gold prices declined because of the strength in US dollar which is trading at a four month highs.
You have the soaring 10-Year bond yields as well treasury yields, which are putting pressure on the prices.
Also, it has been about the selloff in crude oil prices and metals and various other commodities and currencies as well.
The Euro is trading at a four month lows as well that is putting pressure on gold.
Also, the US Non Farm payroll data at around 9,43,000 versus the expectation of 8,70,000 is the best that you have seen in last 11 months and that brings in the conversation that you might be looking at tapering sooner than later and that doesn't augur well for gold there.
It is not just gold, if you look at the other precious metal prices, we have seen a similar pressure come in for Platinum. It is trading at an eight-month lows, you have silver prices trading at a 35-week lows as well.
Text inputs from Reuters
Watch accompanying video for more.
(Edited by : Abhishek Jha)
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