Gold slips as firm dollar counters bets for Fed pause
Timilehin Adejumobi
1 min read
Gold slipped on Monday as the dollar firmed after strong U.S. payrolls data last week, offsetting some of the support for zero-yield bullion from bets that the Federal Reserve may pause rate hikes in June.
Spot gold fell 0.4% to $1,939.44 per ounce by 1130 GMT, close to its lowest level since May 30. U.S. gold futures fell 0.7% to $1,956.40 per ounce.
“Gold bulls’ shoulders slumped after yet another red-hot headline non-farm payroll print fuelled a rebound in the dollar,” said Han Tan, chief market analyst at Exinity.
Gold dropped more than 1% on Friday after data showed the U.S. economy added 339,000 jobs last month, above estimates of 190,000.
On Monday the dollar index was up 0.3%, making greenback-priced bullion less affordable for overseas buyers. Benchmark U.S. yields meanwhile were near a one-week high.
Gold also weakened on safe-haven demand reducing after U.S. President Joe Biden pushed the debt ceiling deal through both the House and Senate, SP Angel analysts said in a note.
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