Gold Price Holds Steady As Dollar Struggles
London (Dec 10) Gold prices held steady on Monday as the US dollar struggled to hold ground amid declining US yields and a sell-off on Wall Street Friday on trade and growth concerns.
Spot gold was marginally higher at USD1,247.00 per ounce after hitting as high as $1,250.55 earlier in the day, the highest level since July 11. US gold futures were virtually unchanged at USD1,252.70 per ounce.
US stocks succumbed to heavy selling pressure on Friday as trade concerns loomed, the yield curve continued to flatten and the latest jobs report missed estimates, raising concerns of a slowing economy.
US non-farm payroll employment rose by 155,000 jobs in November after surging up by a downwardly revised 237,000 jobs in October.
The jobless rate remained unchanged for the second straight month at 3.7%, holding at its lowest level since hitting 3.5% in December of 1969.
The disappointing jobs data fueled speculation that the Federal Reserve may stop raising interest rates sooner than expected.
The Fed is likely to raise interest rates as expected at its Dec. 18-19 meeting, but traders are no longer certain that it will raise rates even once more next year.
AllianceNews
