ND: Gold Extends Losses as U.S. Jobs Data Curbs Demand
By Katie Riordan
Gold prices fell for the second session in a row Monday, as auspicious U.S. employment data released Friday curbed haven demand.
Gold for December delivery was recently down 0.3% at $1,340.80 a troy ounce on the Comex division of the New York Mercantile Exchange.
"It's a classic narrative, but as employment and bond yields are improving [in the U.S.], it's more expensive to hold gold," said Bernard Dahdah, a precious metals analyst at Natixis.
Higher interest rates tend to weigh on the price of gold, which doesn't accrue interest and struggles to compete with yield-bearing investments.
The probability of the Fed raising rates this year has increased to 47%, Commerzbank said in a note to clients, citing Fed Fund Futures.
Physical demand for gold in countries like China and India has been generally weak, also dragging down the price, Mr. Dahdah added.
Looking ahead, analysts expect a quiet week for gold trading with the possibility of further dips in the safe-haven commodity.
"The best case scenario is we won't see further economic deterioration, which should lead to a pullback in safe- haven demand," said Warren Kreyzig, a commodities research analyst for Julius Baer.
