Home / Financial Services/ Gold prices hit one-week high as dollar turns lower

Gold prices hit one-week high as dollar turns lower

Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 9 April 2019 00:10


Reuters: Gold prices rose to a one-week peak yesterday as the dollar slipped after data showed US wage growth slowed last month, while investors awaited minutes of the US Federal Reserve’s March meeting later this week.

Spot gold gained 0.4% to $ 1,296.06 per ounce by 0605 GMT, having hit a session high of $ 1,296.83 earlier. US gold futures were also up 0.4% at $ 1,300.40 an ounce.

“The dollar index is pulling back from multi-week highs and gold prices are riding this tailwind of softer dollar,” said CMC Markets, Singapore market analyst Margaret Yang.

“Though the non-farm payrolls data was better than expected, the manufacturing jobs fell which is a bad signal for the sector and doesn’t show a very bright picture of the economic outlook.”

The dollar was down 0.2% against key rivals, making bullion cheaper for holders of other currencies.

Though employment growth accelerated from a 17-month low in March, data on Friday showed a slowdown in wage growth and job cuts in the manufacturing sector, the first decline in factory payrolls since July 2017.

The moderation in wage growth supported the Fed’s dovish decision to abandon interest rate increases this year.

The markets are now awaiting the minutes of the Federal Open Market Committee’s (FOMC) March policy meeting, due tomorrow, for cues on the Fed’s future monetary policy stance.

“But ultimately the wildcard remains the US-China trade negotiations,” said SPI Asset Management trading and market strategy head Stephen Innes, adding that the equity markets will spike on news of an agreement, denting the near-term appeal of gold.

US and Chinese negotiators are scheduled to resume discussions this week to try to secure a pact to end the year-long tit-for-tat tariff battle.

Asian shares rose to seven-month highs as investors cheered a rebound in US payrolls and hints of more stimulus in China, capping gold’s gains.

A rally in equity markets has led investors to cut their exposure to gold recently, analysts said.

Speculators slashed their bullish wagers in COMEX gold in the week to 2 April, the US Commodity Futures Trading Commission (CFTC) said on Friday.

Holding’s in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, also fell as much as 3% in the previous week, its biggest weekly percentage decline since end-November 2016.

Among other precious metals, spot platinum was last up 1.4% at $ 907.15 an ounce, after touching its more-than-10-month high of $ 912.90 earlier in the session.

Palladium rose 0.2% to $ 1,372.61 and silver gained 0.3% to $ 15.12.


Share This Article

Facebook Twitter


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

Will power cuts solve electricity crisis?

Tuesday, 23 April 2019

The country faced electricity power cuts, reminding citizens of early 1990s, which resulted in private power producers supplying electrical power with long-term power supply agreements. Today, most have completed their agreement period, but some were

Easter attack: Going beyond condemnation

Tuesday, 23 April 2019

Yesterday was Easter Sunday; 227 persons [at the time of writing] have been killed, and many times more injured. The primary targets were churches and international hotels. It seems clear that the extremist group ISIS (Islamic State of Iraq and Syria

Easter Sunday nightmare

Tuesday, 23 April 2019

This is the most important day of the year for Christians – the Peaceful Easter Sunday or Easter Day was shattered by deadly explosions in several Christian churches throughout the country; and we excoriate such hatred in our beloved country. We th

Poignant pondering on a patriarch

Monday, 22 April 2019

Almost five months have gone. It is with a profound sense of sadness that we experienced the demise of our veteran teacher, respected author, legal luminary, an accomplished ambassador, an eminent public servant and an amazing human being, Dr. Wickre

Columnists More