Gold In Tight Range; Dollar Gains Ahead Of NFP
Frankfurt (Nov 8) Gold futures are trading in a tight range early Europe trading hours today with the US dollar gaining ahead of the monthly labor report later today which is expected to have grown by around 120,000 in October.
Gold for December delivery is trading flat at $ 1,309.80 an ounce in electronic trading on the COMEX division of the New York Mercantile Exchange. Yesterday, it fell$ 9.3, or 0.71%, to settle at 1,308.5 dollars per ounce as the U.S. dollar surged in the wake of the European Central Bank (ECB)'s unexpected rate cut.
The U.S. is due to release its monthly labor report later today— a much-watched indicator over whether the U.S. Federal Reserve will start to wind down its quantitative easing of monetary policy. The non-farm payrolls number is expected to have grown by around 120,000, analysts predicted.
Also Friday starts a busy stretch for China, which will release its October trade data later in the day — starting a raft of monthly economic data to come out over the weekend. Also over the weekend, an important political meeting will start in China — the so-called Third Plenum — where the new leadership is expected to provide an outline for economic policy for the next decade.
In the currencies, the ICE dollar index, which compares the U.S. currency with six top rivals, rose to 80.899 from 80.841 late Thursday in North America.
The euro managed to halt its decline Friday after losing more than 2 U.S. cents at one point Thursday in the wake of a surprise interest-rate cut by the European Central Bank. Standard & Poor's on Friday cut France's sovereign rating, by one notch, to AA from AA+, with S&P saying it believes the French government's reforms to taxation, as well to labor and other markets, won't substantially raise the country's medium-term growth prospects.
The Australian dollar took a hit early Friday in Asia after a statement from the Reserve Bank of Australia indicated another rate-cut was possible. The British pound held within its recent range, edging up $1.6088 from $1.6076. The Japanese yen also saw limited movement, with the dollar firming to ¥98.06 from ¥97.96.
MCX December gold futures are trading flat at Rs 29939 per 10 grams. The metal may face a resistance near Rs 30000 levels with support around Rs 29850-700 levels today
