Gold Prices Dropped to 2 - Months Low Ahead of NFP
- Trade Magnates Team
- Oct 6, 2017
- 1 min read
Trade Magnates - Gold prices have dropped near two-month lows on Friday, as demand for the U.S. dollar strengthened amid rising optimism over the outlook for the economy and as traders awaited a key U.S. jobs report due later in the day.
Gold futures were down $2.22 at $1,270.98 a troy ounce by 07:20 GMT, just off Thursday's two-month low of $1,268.50.
Further reports showed that the U.S. trade deficit narrowed in August, as exports have climbed to a 2.5 year high, at the same time factory orders have increased more than expected.
Hopes for higher U.S. interest rates have boosted the US Dollar after Philadelphia Federal Reserve Bank President Patrick Harker said on Thursday that he is still planning on another rate hike this year and three next year.
Investors' confidence in the U.S. economy was boosted after the Department of Labour has reported on Thursday that initial jobless claims fell more than expected to 260,000 last week.
Gold is affected to moves in both U.S. rates and the dollar. A stronger dollar the more expensive is the gold for holders of foreign currency.
Market participants are looking ahead to the monthly U.S. NonFarm payrolls report due later Friday.