NEW YORK: Gold prices slipped on Wednesday as the dollar rose and bond yields strengthened after data showed US private payrolls increased more than expected in July.
Spot gold was down 0.5% at $1,935.27 per ounce at 11:50 a.m. EDT (1550 GMT), after rising as much as 0.6% earlier on some safe-haven bids after ratings agency Fitch downgraded the US government’s credit rating to AA+ from AAA.
US gold futures fell 0.3% to $1,972.10.
“Higher interest rates would ultimately put pressure on gold. Also, we are seeing more strength in the dollar. Prices are trapped below $2,000 and above $1,900 for the time being,” said Daniel Pavilonis, senior market strategist at RJO Futures.
The dollar rose 0.4% to more than a three-week high, making gold more expensive for holders of other currencies. Benchmark US 10-year Treasury yields climbed to their highest level since July 10.
US private payrolls rose by 324,000 jobs last month, the ADP National Employment Report showed, well above the increase of 189,000 that economists polled by Reuters had forecast.
The Federal Reserve raised interest rates by 25 basis points last week. According to the CME’s FedWatch Tool, the probability that the US central bank would leave rates unchanged at its Sept. 19-20 meeting was at 83%.
Comments
Comments are closed.