Gold eases on firmer dollar and bets for faster Fed tightening
New York (Dec 6) - Gold prices edged lower on Monday, pressured by a stronger dollar and rising expectations that the U.S. Federal Reserve could reduce its asset purchases at a faster pace amid signs of a tighter labour market.
Spot gold fell 0.2% to $1,780.63 per ounce by 0820 GMT, while U.S. gold futures dropped 0.1% to $1,782.70.
The dollar index edged 0.1% higher, raising bullion's cost to buyers holding other currencies.
Bullion rose 1% on Friday after data showed U.S. employment growth slowed considerably in November.
But the data did little to alter expectations of the Fed tapering its stimulus measures at a faster pace, as policymakers likely respond to signs of a tightening labour market with the unemployment rate plunging.
"A faster taper announcement looks like a certainty if data on the Omicron variant this week and next confirms it is milder in severity, so gold could come under sustained pressure and potentially trade as low as $1,720 next week," said Jeffrey Halley, senior market analyst at Oanda.
Reuters