Gold Hits Four – Month Low Amid Stronger Dollar
- Trade Magnates Team
- Dec 8, 2017
- 1 min read
Trade Magnates - Gold Prices declined to four – months low on Tuesday at $1256 a troy ounce amid strong dollar as US tax reform continued its progress, increasing speculation towards a faster Fed’s rate hike. The dollar index was pointing higher to 93.64 rising to its higher level in more than two-weeks.
Gold price touched its lowest level since Aug. 8 at $1256 a troy ounce. The treasury yield curve as turned flattest in a decade yesterday which may affect the yellow metal later today.
Investors believe that the recovery to the economy will cause the Federal Reserve to raise interest rates at faster than expected. Congress is facing a deadline of Friday midnight to pass fresh spending legislation. If they cannot agree on the terms, parts of the federal government could shut down.
Investors are awaiting on Friday's nonfarm payrolls report and wage growth numbers, which would be the last employment report before the Federal Reserve's monetary policy meeting next week. Market will be volatile, and we might see big moves in Gold.