Global gold prices dropped further in Asian trade
Monday as a robust US nonfarm payrolls report boosted the dollar to its highest
in over five years, dulling the bullion’s appeal as a hedge.
Spot gold eased 0.2 per cent to $1,189.94 an ounce in
early Asian trade Monday. The metal lost 1.1 per cent in the previous session
after data showed US employers added the largest number of workers in nearly
three years in November.
Investors fear higher rates would decrease the
demand for gold, a non-interest-bearing asset. The jobs report boosted the
dollar to its highest since March 2009, and the Dow and S&P 500 ended at
record highs.
SPDR Gold Trust, the world’s largest gold-backed
exchange-traded fund, said its holdings rose 0.12 per cent to 720.91 tones on
Friday.
The cost of lending gold returned to positive territory on Friday for the first time in over a month, capping a dramatic week-long recovery, as robust US jobless data reinforced expectations of higher interest rates next year.
The cost of lending gold returned to positive territory on Friday for the first time in over a month, capping a dramatic week-long recovery, as robust US jobless data reinforced expectations of higher interest rates next year.
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