Gold extended losses into a second session on Monday ahead of a key US jobs report this week, pressured by worries the Federal Reserve would raise interest rates this year. Several Fed officials are scheduled to speak this week, keeping the focus of the bullion market firmly on US monetary policy. Traders will also be closely monitoring economic data, including nonfarm payrolls data due on Friday, to gauge the strength of the economy.
Spot gold had eased 0.3 percent to $1,142.40 an ounce by 0655 GMT. The metal had dropped 0.7 percent on Friday after Fed chair Janet Yellen said the US central bank would begin to raise rates this year. "Gold remains driven largely by expectations of Fed policy, given the still high uncertainty about the hike date," Barclays analysts said in a note.
Gold had earlier benefited from ultra-low rates, but the non-interest-paying metal has lost about 3 percent this year on fears that demand could take a hit with higher rates. Hedge funds and money managers raised their bullish bets in COMEX gold futures and in the week to September 22, US Commodity Futures Trading Commission data showed on Friday.
Comments
Comments are closed.